Punjab National Bank Posts Strong Q2 Profit as Bad Loans Decline

Punjab National Bank reported a 12.8 per cent jump in net profit to Rs 5,532 crore for the second quarter compared with Rs 4,904 crore in the same period last year. Net Interest Income reached Rs 11,601 crore, beating broker estimates by 4 per cent. Gross non-performing assets dropped to Rs 34,190 crore from Rs 40,343 crore year-on-year, while gross bad loans moderated to 2.55 per cent of gross advances at the end of September 2026. Net bad loans fell to 0.25 per cent.

Management and Outlook

Bank Managing Director and Chief Executive Officer Ashok Chandra told reporters that lower treasury income caused a drop in operating profit growth. Treasury profit fell to Rs 753 crore from Rs 1,769 crore in the previous year. To woo investors during stock market volatility, the state-owned lender is launching a campaign for a special recurring deposit scheme to offer safe returns. The bank also plans to raise $1 billion under its Medium-Term Note Programme from overseas investors.

Context

State-owned banks in India regularly monitor bad loans and net interest margins to maintain financial stability amid changing interest rate cycles. Recurring deposit schemes are traditional banking products that allow customers to save small amounts regularly with assured returns, making them popular during times of market uncertainty.