Earnings Call Transcript
PNB · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Punjab National Bank reported strong Q4 FY '26 results with net profit of INR 5,225 crores (up 14.4% Y-o-Y) and operating profit of INR 7,500 crores (up 10.7%). Advances grew 12.7% Y-o-Y to INR 12.59 lakh crores, with retail, MSME, and agri segments showing robust growth of 18.2%, 19.9%, and 16.2% respectively. Asset quality improved significantly with GNPA declining to 2.95% from 3.95%, and Net NPA at 0.29%. The bank maintained a healthy capital adequacy ratio of 17.74% and PCR of 97.14%. Management guided for NIM recovery to 2.6%-2.7% range for FY '27, driven by RAM portfolio shift and deposit cost optimization. The bank added 144 branches in FY '26 and plans to open 250 more, focusing on Southern and Western regions.
The bank demonstrated consistent profitability and improving asset quality, which should support stock price. However, NIM remains under pressure from elevated deposit costs, and management's conservative NII growth guidance of 7% despite 12-13% credit growth may limit near-term upside.