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PNB shares jump after Q1 profit triples as asset quality improves
Punjab National Bank said Q1FY27 net profit rose 214% to ₹5,253 crore, while net NPA fell to 0.26% from 0.38% a year earlier.
Punjab National Bank shares rose 5.6% to ₹111.70, a two-month high, after the state-owned lender posted a strong quarter ended June and investors focused on improving profitability and asset quality. LiveMint Markets said the result beat expectations and helped lift sentiment despite a weaker broader market backdrop.
The bank reported Q1FY27 net profit of ₹5,253 crore, up 214% year-on-year from ₹1,675 crore in the same quarter a year earlier. LiveMint Markets attributed the surge to improving core operating performance and continued strengthening in asset quality.
On the income side, net interest income increased 4% quarter-on-quarter, while net interest margin expanded by 6 basis points sequentially, supported by lower funding costs and the run-down of low-yielding advances. The bank expects further NIM improvement through FY27 as residual low-yield IBPC exposure matures and high-cost deposits reprice, and it is targeting FCNR deposit mobilisation of USD 2.5 billion to support funding costs.
Asset quality improved during the quarter, with gross non-performing assets falling by ₹7,292 crore to ₹35,381 crore and net NPA dropping by ₹699 crore to ₹3,433 crore as of June 2025. LiveMint Markets also reported the net NPA ratio fell to 0.26% from 0.38% a year earlier, though provisions for bad loans increased to ₹792 crore from ₹396 crore a year ago.