Punjab National Bank (PNB) registered double-digit year-on-year expansion across its core global and domestic banking metrics for the quarter ended September 30, 2026. PNB’s total global business expanded 12% YoY to hit Rs 31.2 lakh crore, building on its momentum from Q1 where global business previously crossed the Rs 30-lakh-crore mark. On the domestic front, PNB’s business grew 10.8% YoY to reach Rs 29.7 lakh crore.
Credit Momentum Accelerates Across PNB Portfolios
A major highlight of PNB’s operational performance is the sharp acceleration in its lending activities. Global advances surged 14.8% YoY to Rs 13.4 lakh crore in Q2, picking up pace from the 13% YoY growth (Rs 12.7 lakh crore) recorded in Q1.
Domestic credit expansion was equally strong, with PNB’s domestic advances rising 12.6% YoY to Rs 12.6 lakh crore, outpacing the 11.7% YoY growth (Rs 12 lakh crore) seen in the previous quarter.
Steady Deposit Mobilisation Strengthens PNB Liquidity
To back its rapid credit expansion, PNB sustained steady growth in deposit mobilisation across domestic and international operations. Global deposits climbed 9.9% YoY to Rs 17.8 lakh crore in Q2, compared to an 8.5% YoY increase (Rs 17 lakh crore) in Q1.
Domestic deposits for PNB advanced 9.4% YoY to Rs 17.1 lakh crore, up from the 8.6% YoY growth (Rs 16.7 lakh crore) logged in the preceding quarter.
Operational Discipline Drives PNB Earnings and Profitability
PNB’s balance sheet expansion has been backed by disciplined cost rationalisation and core revenue growth. Net profit tripled YoY to Rs 5,253 crore in Q1, up from Rs 1,675 crore in the prior-year period.
Operating profit advanced 6% YoY to Rs 7,519 crore, while Net Interest Income (NII) rose 2% YoY to Rs 10,798 crore. Crucially, PNB cut its operating expenditure by 13% YoY to Rs 7,613 crore, providing significant support to bottom-line profitability.
Strengthening Risk Indicators and Asset Quality at PNB
Asset quality metrics reflect an ongoing cleanup and risk mitigation effort at PNB. Gross Non-Performing Assets (GNPA) declined by 17 basis points YoY to 2.78%, while Net NPA improved to 0.28%.
Fresh slippages decreased quarter-on-quarter to Rs 2,080 crore from Rs 2,758 crore. Meanwhile, PNB doubled its provisions to Rs 792 crore and expanded its domestic Net Interest Margin (NIM) sequentially by 3 basis points to 2.64%.
The Bottom Line
By expanding its global business footprint beyond Rs 31.2 lakh crore while driving 14.8% loan growth, slashing operating expenditure by 13%, and bringing Net NPAs down to 0.28%, PNB demonstrates a compelling combination of top-line expansion and balance sheet resilience.
Driven by robust deposit inflows (9.9%) and proactive provisioning, PNB is well-positioned to sustain its credit momentum and convert operational scale into enduring financial strength.
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