Punjab National Bank Q1 Results: Net Profit Triples Even As Provisions Rise; NII Up 2%

Punjab National Bank's net profit for the first quarter of fiscal 2027 tripled year-on-year, according to an exchange filing on Saturday. 

The bank posted a bottom-line of Rs 5,253 crore, compared to Rs 1,675 crore in the corresponding period of last year. Net interest income, the difference between interest earned and interest paid, rose 2% to Rs 10,798 crore from Rs 10,578 crore. 

Provisions doubled to Rs 792 crore from Rs 396 crore in the year-ago period. Asset quality improved slightly with net NPA down 1 basis point to 0.28% from 0.29%, and Gross NPA down 17 basis points to 2.78% from 2.95%.

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Domestic Net Interest Margin rose 3 basis points to 2.64% from 2.61% quarter-on-quarter, but declined year-on-year from 2.84%. Fresh slippages came in at Rs 2,080 crore, as against Rs 1,886 crore year-on-year; down from Rs 2,758 crore quarter-on-quarter. 

Operating profit rose 6% to Rs 7,519 crore from Rs 7,081 crore in the year-ago period, while operating expenditure declined 13% to Rs 7,613 crore year-on-year. 

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Punjab National Bank Q1FY27 (Standalone, YoY)

• Net interest income up 2% to Rs 10,798 crore from Rs 10,578 crore
• Operating profit up 6% to Rs 7,519 crore from Rs 7,081 crore
• Profit after tax up 214% to Rs 5,253 crore from Rs 1,675 crore
• Provisions up 100% to Rs 792 crore from Rs 396 crore

Asset Quality (QoQ)

• Gross NPA down 17 basis points to 2.78% from 2.95%
• Net NPA down 1 basis point to 0.28% from 0.29%

Punjab National Bank FY27 Guidance

• NIM seen at 2.60%–2.70%
• Net interest income growth seen at 7%
• Credit growth seen at 12%–13%
• Deposit growth seen at 9%–10%
• Operating profit growth seen at 9%–10%
• Gross NPA seen below 2.5%
• Net NPA seen below 0.3%
• Slippage ratio seen below 0.9%

PNB Share Price

PNB's stock closed 0.52% higher at Rs 105.77 apiece on the NSE on Friday. This compared to  a 1.09% advance in the benchmark Nifty index. 

The share price has fallen 14.41% year-to-date and 7.05% in the last 12 months. 

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