PNB Q2 Net Profit Rises 13% to Rs 5,532 Crore as Bad Loan Ratio Falls

what happened

State-owned Punjab National Bank (PNB) reported a 13% year-on-year rise in net profit to Rs 5,532 crore for the July-September quarter of FY27, according to a report published by TradingView.

Net interest income climbed 10% to Rs 11,601 crore, while the gross NPA ratio fell to 2.55% from 3.45% a year earlier. Gross bad loans shrank to Rs 34,190 crore. The provision coverage ratio rose to 97.32%, though the slippage ratio edged up to 0.77%.

The bank's global business, covering deposits and advances, grew 12% to Rs 31.18 lakh crore. Shares of PNB closed at Rs 116.30 on Friday, up 1%.

why it matters

For markets, the key points are better asset quality and a wider net interest margin, which suggest resilience among Indian state-owned banks. The results could support sentiment toward the banking sector and the PSU Bank index, although this covers only one lender.

market impact

Indian banks: better loan quality and higher profit support the state-owned bank segment

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