Punjab National Bank (PNB) has announced its Q1 FY26 results, and the numbers are a mix of good and not-so-good. While the net profit dropped sharply because of a one-time tax issue, the bank’s overall business and asset quality stayed strong. In this article, we break down the key highlights and what these results mean for investors.
PNB Q1 FY26 Results: Key Financial Highlights
- Net Profit: ₹1,675 crore, down 48–49% YoY from ₹3,252 crore due to a significant rise in tax expenses after shifting to the new tax regime.
- Total Income: ₹37,231 crore, up 15.7% YoY.
- Net Interest Income (NII): ₹10,578 crore, a 1% increase YoY.
- Operating Profit: ₹7,081 crore — the bank’s highest-ever quarterly operating profit.
- Profit Before Tax: ₹6,758 crore, up 28.3% YoY.
PNB Q1 FY26: Asset Quality & Provisions
- Gross NPA: ₹42,673 crore; GNPA ratio improved to 3.78% from 4.98% YoY.
- Net NPA: ₹4,132 crore; Net NPA ratio improved to 0.38% from 0.60%.
- Provisions: Fell to ₹396 crore from ₹792 crore YoY.
- Return on Assets (RoA): 0.3%, with management expecting improvement from Q2 onward.
PNB Business & Segment Performance
- Global Business: ₹27.19 lakh crore, +11.6% YoY.
- Deposits: ₹15.89 lakh crore (+12.9%)
- Advances: ₹11.29 lakh crore (+9.8%)
- Loan Segments:
- Retail Loans: +11.8% YoY
- Housing Loans: +16.6% YoY
- Vehicle Loans: +25.3% YoY
- MSME Advances: +18.6% YoY
- Agriculture Advances: +6.2% YoY
- Credit-Deposit Ratio: 71.09%
- Recovery Target for FY26: ₹16,000 crore (₹3,300 crore already recovered in Q1)
PNB Share Price Update (as of July 31, 2025)
- Closing Price: ₹105.20 (NSE)
- Intraday Range: ₹104.85 – ₹105.35
- Performance:
- Down 0.75% intraday.
- Underperformed banking sector with a 3.61% decline on the day.
- Down over 14% in the past year.
- Analyst Price Targets:
- ₹120 (The Hindu Business Line)
- ₹130 (Motilal Oswal)
Management Outlook & Analyst Commentary
- Management View:
- The drop in net profit is a one-time hit due to the tax regime change.
- Underlying operations are strong; efficiency ratios expected to improve from Q2.
- Analyst Opinions:
- Short-term muted outlook due to tax impact.
- Long-term view remains positive thanks to solid asset quality and operating strength.
PNB Q1 FY26 Summary Table
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Net Profit | ₹1,675 crore | ₹3,252 crore | -48.5% |
| Total Income | ₹37,231 crore | ₹32,170 crore* | +15.7% |
| Net Interest Income | ₹10,578 crore | ₹10,470 crore* | +1.0% |
| Operating Profit | ₹7,081 crore | Not specified | Record High |
| Gross NPA Ratio | 3.78% | 4.98% | Improvement |
| Net NPA Ratio | 0.38% | 0.60% | Improvement |
| Share Price (Jul 31) | ₹105.20 | — | — |
(*Estimated from YoY growth for summary purposes)
FAQs: PNB Q1 FY26 Results
1. Why did PNB’s profit fall in Q1 FY26?
Due to a one-time tax expense surge from transitioning to a new tax regime.
2. Is PNB’s operational performance still strong?
Yes. It reported its highest-ever quarterly operating profit and improving asset quality.
3. Should investors worry about rising NPAs?
No. GNPA and NNPA ratios improved significantly YoY, indicating stronger asset quality.
4. What’s the outlook for PNB stock?
Short-term pressure may persist, but analysts remain optimistic on long-term growth.
5. What are PNB’s growth targets for FY26?
Loan segment growth and ₹16,000 crore recovery target, with ₹3,300 crore already done in Q1.
Conclusion
While the headline profit number may look disappointing, PNB’s Q1 FY26 shows strong underlying fundamentals: record operating profit, improved asset quality, and robust loan growth. As the one-off tax impact normalizes, the bank appears poised for stronger performance in upcoming quarters. Investors may want to monitor for stability in future earnings.
