Daijiworld Media Network - New Delhi
New Delhi, Jul 30: Punjab National Bank (PNB) reported a 49% year-on-year decline in net profit for the quarter ended June 30, 2025 (Q1 FY26), posting Rs 1,675 crore compared to Rs 3,251 crore in the same period last year. The drop comes despite solid operational performance, as a sharp spike in tax expenses weighed heavily on the bottom line.
In the previous quarter (Q4 FY25), PNB had registered a net profit of Rs 4,567 crore.
Key Financial Highlights – Q1 FY26:
• Net Profit: Rs 1,675 crore (?49% YoY)
• Total Income: Rs 37,231 crore (?15.7% YoY)
• Net Interest Income (NII): Rs 10,578 crore (?1% YoY)
• Tax Expense: Rs 5,083 crore (?>150% YoY, from Rs 2,017 crore)
• Profit Before Tax (PBT): Rs 6,758 crore (?28% YoY)
While the Net Interest Income rose marginally from Rs 10,468 crore, and total income increased significantly, these gains were offset by a more than doubling of tax outgo, which dented overall profitability.
Asset Quality Improves:
PNB also reported a significant improvement in asset quality:
• Gross NPAs: Rs 42,673 crore (? YoY)
• Gross NPA Ratio: 3.78% (vs 4.98% YoY)
• Net NPA Ratio: 0.38% (vs 0.60% YoY)
• Provisions: Rs 396 crore (? from ?792 crore YoY)
Business Growth:
• Global Business: Rs 27.19 lakh crore (?11.6% YoY)
Despite the drop in net profit, the bank’s profit before tax grew 28%, highlighting underlying operational strength. The improved asset quality and lower provisioning further reflect financial resilience.
However, the surge in tax liability remained the key drag on earnings this quarter.