Punjab National Bank Earnings Summary — Q1 FY2027
PNB Reports Record Net Profit Growth to ₹5,253 Crore for Q1 FY27
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 2.4% sequentially in Q1 FY2027.
- Revenue of ₹33,589 Cr is 3.1% higher year-on-year.
- Revenue has compounded at 7.3% 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 ₹5,815 Cr is 174.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 27.9% annualised across the period.
- Operating margin stands at 75.4% in Q1 FY2027.
- Operating margin expanded by 364 bps year-on-year.
- Over the last two years operating margin has expanded by 447 bps.
- PBT margin is 21.2%.
- Expense growth of -10.2% remained below revenue growth of 3.1%.
- Operating profit of ₹25,327 Cr is 8.3% 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 74/100 (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 Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 33,589 | 32,798 | 32,889 | 32,513 | 32,572 | 32,523 | 31,895 | 30,447 | 29,145 | 28,682 |
| Expenses | Stable | 8,262 | 7,518 | 9,298 | 8,299 | 9,197 | 9,142 | 7,494 | 8,592 | 8,473 | 9,831 |
| Operating Profit | Improving | 25,327 | 25,280 | 23,591 | 24,214 | 23,375 | 23,381 | 24,401 | 21,855 | 20,672 | 18,852 |
| Operating Margin | Stable | 75.4% | 77.1% | 71.7% | 74.5% | 71.8% | 71.9% | 76.5% | 71.8% | 70.9% | 65.7% |
| Other Income | Stable | 4,365 | 4,080 | 5,013 | 4,171 | 5,427 | 4,776 | 3,392 | 4,664 | 3,615 | 4,294 |
| Interest | Stable | 22,583 | 22,219 | 22,164 | 21,858 | 21,828 | 21,640 | 20,738 | 19,790 | 18,536 | 18,206 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 7,108 | 7,141 | 6,440 | 6,527 | 6,973 | 6,518 | 7,055 | 6,729 | 5,751 | 4,940 |
| Tax | Volatile | 1,769 | 1,916 | 1,250 | 1,678 | 5,141 | 1,875 | 2,406 | 2,297 | 2,035 | 1,839 |
| Net Profit | Volatile | 5,815 | 5,592 | 5,556 | 5,125 | 2,120 | 4,989 | 4,801 | 4,714 | 3,976 | 3,342 |
| Net Margin | Volatile | 17.3% | 17.1% | 16.9% | 15.8% | 6.5% | 15.3% | 15.1% | 15.5% | 13.6% | 11.7% |
Key Takeaways
- Standalone Net Profit for Q1 FY27 reached ₹5,253 crore, representing a significant 213.6% increase compared to ₹1,675 crore in Q1 FY26.
- The bank achieved a substantial improvement in asset quality, with Gross NPA ratio declining to 2.78% from 3.78% year-on-year.
- Net NPA ratio reached a record low of 0.28%, down from 0.38% in the same quarter last year, reflecting disciplined underwriting.
- Capital Adequacy Ratio (CRAR) strengthened to 18.13%, supported by a healthy CET 1 ratio of 14.51% as of June 30, 2026.
- Provisioning Coverage Ratio (PCR) improved to 97.23%, including technically written-off accounts, demonstrating robust buffer levels.
- Interest earned remained stable at ₹32,157 crore, while non-interest income provided significant support to overall profitability.
Management Guidance
Management expects global NIM to remain in the range of 2.6% to 2.7% for FY2026-27, with a focus on RAM (Retail, Agri, MSME) to drive margins.
Sentiment Shift
Improving
Significant year-on-year profit surge and consistent improvement in asset quality metrics signal a strong fundamental turnaround.
Outlook
The bank plans to open 250 new branches in FY27, specifically targeting the Southern and Western regions of India to capture market share. Growth is expected to be driven by a sanctioned corporate credit pipeline and a shift toward high-yield digital lending through platforms like Digi MSME Prime.
From the Annual Report (Key Quotes)
“The bank delivered broad-based sustainable performance across all four dimensions: customer service, business growth, asset quality, and profitability.”
“Every third loan is being sanctioned in digital mode in our bank, reflecting our commitment to technology-enabled credit solutions.”
“We have enough cushion to take care of any requirement which will come on account of implementation of ECL.”
Official Quarterly Documents
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This summary is AI-generated from Punjab National Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.