THEBUSINESSBYTES
BUREAU
NEW
DELHI, MAY 5, 2026
State-owned banking
major Punjab National Bank (PNB) has delivered a steady financial performance
for FY26, with its net profit crossing ₹16,900 crore, underpinned by improved asset quality,
healthy credit growth and a sharp surge in digital adoption.
The bank reported a
net profit of ₹16,904
crore for the full financial year, marking a year-on-year growth of 1.6 per
cent, while its Q4 profit rose 14.4 per cent to ₹5,225 crore. Operating profit for FY26 stood strong at
₹29,290 crore, up 9.2 per cent, reflecting improved operational efficiency and
cost management.
PNB’s balance sheet
expansion remained robust, with global business growing 10.7 per cent
year-on-year to ₹29.70
lakh crore. Deposits increased 9.2 per cent to ₹17.11 lakh crore, while
advances registered a faster growth of 12.7 per cent to ₹12.59 lakh crore,
driven by retail, agriculture and MSME segments.
A key highlight of
the results was the marked improvement in asset quality. The bank’s gross
non-performing assets ratio declined significantly to 2.95 per cent from 3.95
per cent a year ago, while net NPAs fell to 0.29 per cent. Provision coverage
ratio improved to 97.14 per cent, indicating stronger buffers against stressed
assets.
Profitability metrics
also showed positive momentum, with return on assets improving to 1.06 per cent
in the March quarter. Earnings per share rose to ₹4.55 in Q4, while book value per share
increased by 11 per cent to ₹114.77
for the year.
On the business
front, retail credit growth remained steady at 8.3 per cent, with core retail
advances surging 18.2 per cent. Housing loans grew 11.6 per cent, while vehicle
loans witnessed a sharp jump of over 35 per cent. MSME advances rose nearly 20
per cent and agriculture credit expanded by 10.7 per cent, reflecting the
bank’s continued focus on priority sectors.
Digital banking
emerged as a major growth driver, with PNB One users rising 21 per cent to 260
lakh and WhatsApp banking users surging 77 per cent. UPI transactions grew 21
per cent to 323 crore in Q4, while digital transactions accounted for over 95
per cent of total transactions, underscoring rapid digital transformation.
The bank also
maintained strong capital adequacy, with its CRAR improving to 17.74 per cent,
providing ample headroom for future growth. Efficiency indicators such as
business per employee and per branch also showed notable gains, highlighting
improved productivity.
With over 10,300
domestic branches and a dominant presence in rural and semi-urban areas, PNB
continues to deepen financial inclusion, surpassing national targets in
priority sector lending and expanding enrolments under key government social security
schemes.
