PNB Reports 14% YoY Increase in Net Profit to Rs 5,225 Crore in Q4, Declares Rs 3 Dividend per Share

Punjab National Bank Sees 14.4% Rise in Q4 FY26 Net Profit

Punjab National Bank (PNB) has reported a notable increase in its net profit for the fourth quarter (Q4) of fiscal year 2026. The state-owned lender's net profit rose 14.4 percent year-on-year to Rs 5,225 crore, outpacing expectations.

Despite this positive trend, PNB's core interest income moderated during the period. The bank's net interest income (NII) declined 3.5 percent year-on-year to Rs 10,380 crore from Rs 10,757 crore in the year-ago quarter. This decline was a significant contrast to the previous quarter's performance.

However, PNB's asset quality improved sequentially. The bank's gross non-performing assets (GNPA) ratio eased to 2.95 percent in Q4 from 3.19 percent in the previous quarter, indicating a positive trend. Similarly, the net NPA (NNPA) ratio narrowed to 0.29 percent from 0.32 percent QoQ, further emphasizing the bank's efforts to strengthen its asset quality.

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Provisions also declined sharply on a sequential basis. The bank reported provisions of Rs 424 crore in the January-March quarter, down from Rs 1,150 crore in the October-December quarter. Although slightly higher than Rs 360 crore in the year-ago period, this decline is a welcome sign of the bank's improving financial health.

In a separate development, PNB's board has recommended a dividend of Rs 3 per share (face value Rs 2 each) for FY26, providing a positive signal to investors.