PNB Q1 Results: Standalone PAT falls 48% YoY to Rs 1,675 cr on one-time tax expense; total income rises 16%

State-owned Punjab National Bank on Wednesday reported a standalone net profit of Rs 1,675 crore for the quarter ended June 2025, marking a 48% year-on-year (YoY) decline from Rs 3,251.5 crore in the first quarter of FY25.

Total income for the June quarter rose 15.7% YoY to Rs 37,232 crore, up from Rs 32,166 crore a year earlier.

Net interest income (NII), however, remained largely flat, increasing by just 1% year-on-year to Rs 10,578 crore from Rs 10,476 crore in the year-ago period.


The sharp fall in profit was driven by a one-time tax expense of Rs 5,083.3 crore, compared with Rs 2,017 crore in the corresponding quarter of the previous year.

On a consolidated basis, the lender posted a net profit of Rs 1,832 crore for the first quarter, down 52% from Rs 3,716 crore a year earlier.

Asset quality improved modestly on a sequential basis. Gross non-performing assets stood at 3.78% at the end of June, down from 3.95% in March. Net NPAs eased to 0.38% from 0.4%.

Shares of PNB were down 0.8% after the results, trading at Rs 108.36. The stock has risen 5.6% year-to-date.

Asset Quality

The bank reported sequential and annual improvements in asset quality. Gross non-performing assets (GNPA) fell to Rs 42,673 crore as of June 2025, a decline of Rs 8,590 crore from Rs 51,263 crore a year earlier.

The gross NPA ratio improved to 3.78%, down from 3.95% in March and 5.73% in June 2024. Net non-performing assets (NNPA) also declined to Rs 4,132 crore from Rs 5,930 crore in the year-ago quarter, with the NNPA ratio improving to 0.38% from 0.60%.

Provisioning levels also strengthened. The provision coverage ratio (PCR), including technical write-offs, improved to 96.88% as of June 2025 from 95.90% a year ago. Excluding technical write-offs, the PCR rose to 90.32%, up 189 basis points from 88.43% in June 2024.

Performance in key parameters

PNB saw growth in both deposit and lending segments. Savings deposits rose to Rs 4,97,981 crore, up 2.8% year-on-year, while current deposits grew by 9.2% to Rs 70,656 crore.

Total CASA (current and savings account) deposits stood at Rs 5,68,638 crore, reflecting a year-on-year increase of 3.6%. The CASA ratio stood at 36.99% at the end of the June quarter.

On the advances front, retail credit rose 11.8% year-on-year to Rs 2,62,219 crore. The bank's core retail lending segment posted stronger growth, rising 17.7% from the year-ago period. Agriculture loans grew by 6.2% to Rs 1,78,885 crore, while MSME advances surged 18.6% year-on-year to Rs 1,69,426 crore.

Capital Adequacy

The lender’s capital buffers improved substantially during the quarter. The capital to risk-weighted assets ratio (CRAR) rose to 17.50% as of June 2025, up from 15.79% in June 2024.

Tier-I capital increased to 14.62%, with the common equity tier-1 (CET-1) component at 12.95% and additional Tier-1 (AT1) capital at 1.67%, compared to a Tier-I ratio of 13.04% a year earlier.

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