Punjab National Bank Earnings Summary — Q2 FY2027
PNB Reports Q2 FY2027 Standalone Net Profit of ₹5,532 Cr (+12.8% YoY); Gross NPA Drops to 2.55% with PCR at 97.32%
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹35,267 Cr is 8.5% higher year-on-year.
- Revenue has compounded at 8.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹5,898 Cr is 15.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 19.2% annualised across the period.
- Operating margin stands at 77.8% in Q2 FY2027.
- Operating margin expanded by 329 bps year-on-year.
- Over the last two years operating margin has expanded by 599 bps.
- PBT margin is 21.2%.
- Expense growth of -5.5% remained below revenue growth of 8.5%.
- Operating profit of ₹27,428 Cr is 13.3% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 77/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q2 FY2027 | Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 35,267 | 33,589 | 32,798 | 32,889 | 32,513 | 32,572 | 32,523 | 31,895 | 30,447 | 29,145 |
| Expenses | Stable | 7,839 | 8,262 | 7,518 | 9,298 | 8,299 | 9,197 | 9,142 | 7,494 | 8,592 | 8,473 |
| Operating Profit | Improving | 27,428 | 25,327 | 25,280 | 23,591 | 24,214 | 23,375 | 23,381 | 24,401 | 21,855 | 20,672 |
| Operating Margin | Stable | 77.8% | 75.4% | 77.1% | 71.7% | 74.5% | 71.8% | 71.9% | 76.5% | 71.8% | 70.9% |
| Other Income | Stable | 3,524 | 4,365 | 4,080 | 5,013 | 4,171 | 5,427 | 4,776 | 3,392 | 4,664 | 3,615 |
| Interest | Stable | 23,464 | 22,583 | 22,219 | 22,164 | 21,858 | 21,828 | 21,640 | 20,738 | 19,790 | 18,536 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 7,488 | 7,108 | 7,141 | 6,440 | 6,527 | 6,973 | 6,518 | 7,055 | 6,729 | 5,751 |
| Tax | Volatile | 1,927 | 1,769 | 1,916 | 1,250 | 1,678 | 5,141 | 1,875 | 2,406 | 2,297 | 2,035 |
| Net Profit | Volatile | 5,898 | 5,815 | 5,592 | 5,556 | 5,125 | 2,120 | 4,989 | 4,801 | 4,714 | 3,976 |
| Net Margin | Volatile | 16.7% | 17.3% | 17.1% | 16.9% | 15.8% | 6.5% | 15.3% | 15.1% | 15.5% | 13.6% |
Key Takeaways
- Standalone Net Profit for Q2 FY2027 rose 12.81% YoY and 5.31% QoQ to ₹5,532.23 crore, driven by sustained loan book expansion and lower credit costs.
- Asset quality improved substantially with Gross NPA ratio declining to 2.55% (down from 2.78% in Q1 FY2027 and 3.45% in Q2 FY2026) and Net NPA ratio improving to 0.25%.
- Provision Coverage Ratio (PCR) including technically written-off accounts remained robust at 97.32% as of September 30, 2026, up from 96.91% a year ago.
- Operating profit stood at ₹7,531.94 crore with an operating margin of 19.72%, slightly lower QoQ from 20.20% due to higher operating expenses.
- Capital Adequacy Ratio (CRAR) under Basel III remained healthy at 18.13% with CET-1 ratio at 14.52% as of September 30, 2026.
- The bank proactively strengthened its balance sheet by making an additional provision of ₹1,150 crore on standard advances over and above the regulatory minimum.
Management Guidance
Management remains focused on maintaining credit discipline, expanding the RAM (Retail, Agriculture, and MSME) portfolio, and driving digital transformation via Digital Banking Units while preserving underwriting quality and high provision buffers.
Sentiment Shift
Improving
Asset quality metrics continue their steady improvement with GNPA dropping to 2.55% and NNPA at 0.25%, accompanied by robust double-digit bottom-line growth and proactive standard asset provisioning.
Outlook
PNB is well-positioned to maintain stable return metrics (RoA annualized at 1.05%) supported by strong capitalization (CET-1 at 14.52%), high provision coverage (97.32%), and disciplined recoveries across corporate and retail portfolios.
From the Annual Report (Key Quotes)
“During the quarter ended September 30, 2026, the Bank has proactively made an additional provision of Rs. 1150 crore on standard advances over and above the regulatory minimum.”
“The Provisioning Coverage Ratio (including Technically Written off accounts) as at September 30, 2026 works out to 97.32% (96.91% as at September 30, 2025).”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Punjab National Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
Explore more on AnnualReportAI
Free research tools for Indian listed companies.