Punjab National Bank's Q2 FY27 numbers came in strong, with revenue of Rs. 38,185.40 Cr (+5.40% YoY) and PAT growth of +12.80% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 16, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 38,185.40 Cr (+5.40% YoY) |
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| PAT (Q2) | Rs. 5,532.20 Cr (+12.80% YoY) |
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| EBITDA margin | 19.72% (-24 bps YoY) |
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| Market cap | Rs. 133,488.89 Cr |
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| CMP | Rs. 116.30 |
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Quarter Snapshot
PNB beat its own FY27 guidance on credit growth (+15.6% vs 12-13%), NII growth (+10.8% vs 7%), NNPA (0.25% vs below 0.30%), PCR (97.32% vs above 96%) and ROA (1.05% vs above 1%), while operating profit growth of 4.2% trails the 9-10% target. Net profit rose 12.8% YoY to Rs.5,532 crore as provisions fell 85% YoY to Rs.97 crore and GNPA improved 90 bps to 2.55%. Other income fell 17.1% YoY and H1 operating cash flow turned negative at −Rs.60,816 crore as loan growth outpaced deposit growth.
Key Investment Insights
Key Positives
- Net profit grew 12.8% YoY to Rs.5,532 crore; PBT grew 12.9% YoY to Rs.7,435 crore
- Provisions fell 85% YoY to Rs.97 crore; GNPA improved 90 bps YoY to 2.55% and NNPA to 0.25%
- Advances grew 15.6% YoY, above the 12-13% FY27 guidance; NII grew 10.8% YoY, above the 7% target
- Operating expenses grew 1.1% YoY against 8.5% interest earned growth; cost-to-income improved 168 bps YoY to 49.85%
- PCR at 97.32% exceeds the above-96% target; CAR at 17.95% with CET1 up to 14.44% from 12.75% YoY
- Corporate banking segment profit rose 43.7% YoY and retail banking segment profit rose 38.4% YoY
- ROA at 1.05% is above the above-1% FY27 target; deposits grew 9.9% YoY, within the 9-10% guidance
- NII yield improved 77 bps YoY to 33.5% of interest earned
Risk Factors
- Operating profit grew 4.2% YoY, below the 9-10% FY27 guidance; the full-year target is flagged at risk without H2 acceleration
- Other income declined 17.1% YoY to Rs.3,601 crore, falling to 9.4% of total income from 12.0% in Q2 FY26
- Other operating expenses rose 15.1% YoY, faster than the 8.5% growth in interest earned
- Treasury segment profit fell 29.5% YoY with segment margin compressing from 27.5% to 20.5%
- H1 FY27 operating cash flow was negative at −Rs.60,816 crore versus positive Rs.50,255 crore in H1 FY26 as advances growth outpaced deposits; borrowings rose 43.4% QoQ
- GNPA at 2.55% remains 5 bps above the below-2.50% FY27 target