THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 19, 2026

Punjab National Bank (PNB), the nation’s leading public sector lender, on Monday reported a robust financial performance for the third quarter (Q3) of FY26 and the nine months ended December 31, 2025, underlining sustained profitability, sharper asset quality and accelerating digital adoption. The bank’s net profit for Q3 FY’26 rose 13.1 per cent year-on-year to ₹5,100 crore, compared with ₹4,508 crore in the corresponding quarter last year, while operating profit grew 13 per cent to ₹7,481 crore, reflecting resilient core banking strength, said PNB MD & CEO Ashok Chandra at the virtual press meet today.

Profitability indicators showed steady improvement, with return on assets rising to 1.06 per cent from 1.03 per cent a year ago. For the nine-month period, net profit stood at ₹11,679 crore and operating profit reached ₹21,789 crore. Total income increased 7.2 per cent year-on-year in Q3 to ₹37,253 crore and 9.2 per cent over nine months to ₹1,10,698 crore, supported by growth in both interest and non-interest income. Non-interest income, in particular, surged 47.2 per cent in Q3, underscoring the bank’s expanding fee and treasury streams.

PNB’s balance sheet continued to expand at a healthy pace, with global business rising 9.5 per cent year-on-year to ₹28.92 lakh crore as of December 2025. Global deposits grew 8.5 per cent to ₹16.60 lakh crore, while global advances increased 10.9 per cent to ₹12.31 lakh crore. Retail, agriculture and MSME lending remained key growth drivers, with RAM advances up 11 per cent year-on-year to ₹6.62 lakh crore. Core retail credit expanded sharply, led by a 14.5 per cent rise in housing loans and a strong 35.7 per cent growth in vehicle loans, while MSME advances climbed 18.1 per cent and agriculture advances rose 9.8 per cent.

Asset quality showed marked improvement, reinforcing the bank’s strengthened risk profile. The gross NPA ratio declined by 90 basis points year-on-year to 3.19 per cent, while net NPA stood at a low 0.32 per cent. In absolute terms, gross NPAs reduced by ₹6,100 crore and net NPAs fell by ₹603 crore over the year. Provision coverage ratio, including technical write-offs, improved further to 96.99 per cent, providing a strong buffer against potential stress.

Capital adequacy remained comfortable, with CRAR improving by 136 basis points year-on-year to 16.77 per cent. Tier-I capital rose to 14.13 per cent, including a CET-1 ratio of 12.52 per cent, reflecting enhanced balance sheet resilience and capacity to support future growth. Efficiency metrics also strengthened, with business per employee and per branch rising meaningfully, alongside higher net profit per employee and branch.

On the deposits front, CASA deposits increased to ₹5.92 lakh crore, with CASA share at 37.1 per cent, while term deposits grew 10.4 per cent year-on-year. The credit-deposit ratio stood at 74.2 per cent, indicating optimal balance between growth and liquidity. Yield and cost metrics remained stable, aided by a decline in the cost of deposits to 5.09 per cent in Q3 FY’26.

PNB continued to exceed national benchmarks in priority sector lending, with priority sector advances at 42.68 per cent of ANBC. Targets for agriculture, small and marginal farmers, weaker sections and micro enterprises were all surpassed, reaffirming the bank’s commitment to inclusive growth. Financial inclusion initiatives gained further traction, with PMJDY accounts rising to 560.51 lakh and significant increases in enrollments under PMJJBY, PMSBY and Atal Pension Yojana.

Digital transformation emerged as a major growth lever during the quarter. PNB One activated users crossed 250 lakh, WhatsApp Banking users surged 81 per cent year-on-year, and digital transactions accounted for nearly 95 per cent of total transactions. Digital lending sanctions and disbursements exceeded ₹12,672 crore in Q3, supported by new initiatives such as Digi Saarthi, Tractor Xpress, DIGI MSME and enhanced PNB One capabilities with UPI integration, e-KYC and unified lending interfaces.

With a wide distribution network of over 10,261 domestic branches, a strong rural and semi-urban presence, and more than 54,000 customer touch points, PNB reinforced its position as a technologically advancing yet deeply inclusive public sector bank.