PNB Q3 Results: Standalone PAT rises 13% YoY to Rs 5,100 crore; NII drops 4.5%

State-owned lender Punjab National Bank (PNB) on Monday reported a 13% year-on-year increase in standalone net profit for the December quarter at Rs 5,100 crore, compared with Rs 4,508 crore in the year-ago period. Profit after tax (PAT) rose 4% sequentially from Rs 4,904 crore in the September quarter.

PNB’s net interest income (NII) declined 4.5% year-on-year (YoY) to Rs 10,533 crore in the December quarter, from Rs 11,032 crore a year earlier. Domestic net interest margins (NIMs) stood at 2.60%, down 49 basis points from 3.09% in the same period last year.

The PSU bank reported interest income of Rs 32,231 crore in Q3FY26, up 2.8% from Rs 31,340 crore in the corresponding quarter of the previous financial year. Interest expended rose 7% YoY to Rs 21,698 crore, compared with Rs 20,308 crore in Q3FY25.

Loans and deposits

PNB’s global business grew 9.5% YoY to Rs 28,91,528 crore in the December quarter. Global deposits increased 8.5% YoY to Rs 16,60,290 crore, while global advances rose 11% YoY to Rs 12,31,238 crore.

Savings deposits stood at Rs 5,15,799 crore, registering a 4.8% YoY growth, while current deposits increased 9.1% YoY to Rs 76,377 crore. As a result, CASA deposits rose 5.3% YoY to Rs 5,92,176 crore.

Core retail advances expanded 18.9% YoY as of December 2025. Within this segment, housing loans grew 14.5% YoY to Rs 1,27,364 crore, while vehicle loans surged 35.7% YoY to Rs 33,458 crore.

Agriculture advances increased 9.8% YoY to Rs 1,91,629 crore, while MSME loans rose 18.1% YoY to Rs 1,88,209 crore.

Profitability metrics also improved. Return on assets (RoA) rose to 1.06% in Q3FY26 from 1.03% in Q3FY25, while operating profit increased 13% YoY to Rs 7,481 crore, compared with Rs 6,621 crore a year ago.

Asset quality

Asset quality strengthened further during the quarter. Gross NPAs declined to 3.19% in Q3FY26 from 3.45% in Q2FY26 and 4.09% in Q3FY25, while net NPAs improved to 0.32%, down from 0.36% in the preceding quarter and 0.41% a year earlier.

The provision coverage ratio (including TWO) improved by 22 basis points year-on-year to 96.99% as of December 2025, compared with 96.77% in December 2024.

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