Punjab National Bank, one of India's largest public sector banks, reports its Q2 FY 2026-2027 results with lending momentum clearly accelerating — provisional H1 data shows global advances up 14.80% YoY against a 12-13% full-year target. The print will speak to whether global NIM can close the gap to the 2.60%-2.70% FY27 guidance from June's 2.50%, and how the bank is positioning for the ECL provisioning transition due April 1, 2027.
| Results date | October 16, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue (NII) | Rs. 10,798 crore |
| Previous quarter PAT | Rs. 5,253 crore |
| Previous quarter global NIM | 2.50% |
| Market cap | Rs. 132,283.84 Cr |
| CMP | Rs. 115.1 |
PNB notified a board meeting for October 16, 2026 to consider Q2/H1 FY27 results. The trading window was stated to be closed from October 1 to October 18.
The Q2 print will test whether PNB can close its FY27 guidance gaps in NII growth, NIM, deposit growth, CASA share and GNPA, which were all off-target at June 2026. The provisional H1 update announced October 2 already shows global business at Rs. 31,19,790 crore, up 11.95% YoY, with global advances growth of 14.80% YoY — above the 12%-13% FY27 target and Q1's 12.7% — and deposit growth of 9.90% YoY, now inside the 9%-10% guidance band. The credit-deposit ratio improved to 75.56% from 73.81% in Q1, even as the bank continued shedding low-yielding corporate advances, about Rs. 34,000-35,000 crore in Q1 alone. On margins, global NIM of 2.50% in Q1 improved 3 bps QoQ from 2.47%, and management said it was confident of sequential NIM improvement in coming quarters and of achieving FY27 guidance, with the CEO confirming the expected actions are included in the 2.6%-2.7% NIM guidance. Asset quality remains a support: Q1 GNPA was 2.78% against the below-2.50% FY27 target, while NNPA of 0.28%, credit cost of 0.25% and annualized slippage ratio of 0.68% were all within stated targets. The ECL transition is the dominant overhang — the bank had built Rs. 2,435 crore of floating provisions by Q1, and management has cited an estimated post-tax requirement of Rs. 9,000-10,000 crore over five years with incremental quarterly credit cost of around 10-15 basis points once implementation begins on April 1, 2027. The call is likely to cover the NIM bridge, the pace of the low-yielding book exit, and a firmer ECL transition estimate.
FY27 guidance tracking vs June 2026 actuals: June actuals showed gaps on six FY27 targets; the Q2 update will show which have closed.
NIM trajectory and deposit repricing
Credit growth and low-yielding book exit
ECL readiness and floating provisions
FCNR mobilization and MSME growth
Global NIM improved 3 bps QoQ to 2.50% in Q1 FY27 and domestic NIM rose to 2.64% from 2.61% in Q4 FY26. Management said it was confident of sequential NIM improvement and confirmed the expected actions are included in the 2.6%-2.7% FY27 NIM guidance.
The bank has built total floating provisions of Rs. 2,435 crore, including an additional Rs. 390 crore in Q1 FY27, which the CEO called a 'very, very prudent decision' ahead of the April 1, 2027 implementation. Management has cited an estimated requirement of Rs. 9,000-10,000 crore post-tax over five years with incremental quarterly credit cost of around 10-15 basis points, but said a final number needs further modelling.
In Q2 FY26, management said it expected ROA to reach around 1.10% in Q3 and Q4 FY26; the later presentation reported Q3 ROA of 1.06% and Q4 ROA of 1.06%. Q1 FY27 ROA was 1.04%, above the FY27 target of above 1%.
Management stated that MSME growth was above 20% and that it expects around 25% growth. Q1 FY27 MSME advances grew 19.8% YoY.
Yes — Q1 FY27 global advances grew 12.7% YoY despite a Rs. 22,411 crore reduction in low-yielding IBPC exposure, with core advances excluding IBPC up 15.4%. The provisional H1 update shows global advances growth accelerating to 14.80% YoY, above the 12%-13% FY27 target.