State-owned Punjab National Bank (PNB) is aiming to enter the ₹6,000-crore quarterly profit club after reporting its highest-ever quarterly net profit of ₹5,532 crore in the September quarter of FY27.
PNB Managing Director and CEO Ashok Chandra said the bank has recorded consistent growth in operating profit, net earnings and other key financial indicators over the past four quarters. This performance has strengthened the bank’s confidence in sustaining its profitability.
Chandra said PNB expects further improvement in operating earnings to support higher net profits over the coming quarters.
PNB Quarterly Profit Rises Despite Treasury Losses
PNB reported a 13% year-on-year increase in net profit to ₹5,532 crore for the quarter ended September 2026. Stronger core income and a reduction in bad loans supported the performance.
However, treasury income declined sharply to ₹753 crore from ₹1,769 crore in the corresponding quarter last year.
Chandra said the bank absorbed treasury losses of around ₹1,000 crore compared with the year-ago period while maintaining growth in operating profit.
“We are already at Rs 5,500 crore, and we are aiming to grow the operating profit, despite the treasury loss of around Rs 1,000 crore in this particular quarter compared to September 2025.
“Still, we have maintained the operating profit growth. I think just wait for a few quarters,” he said, when asked about the timeline for achieving ₹6,000 crore in quarterly net profit.
Core Operating Profit Grows 29%
Highlighting the strength of the bank’s underlying operations, Chandra said core operating profit, excluding treasury gains and recoveries, increased approximately 29% year-on-year in the September quarter.
This followed growth of 32–34% in the preceding quarter, indicating continued momentum in PNB’s core business.
According to Chandra, the consistent expansion in core operating earnings provides a stronger foundation for future profitability and reduces the bank’s dependence on volatile treasury income.
PNB Expands Retail, MSME and Agricultural Lending
PNB is accelerating lending across its retail, agriculture and micro, small and medium enterprises (RAM) portfolio, alongside selective expansion in corporate credit.
The bank’s retail loan portfolio is growing at more than 16%, while MSME advances are increasing by 19–20%. Agricultural lending has also registered growth of more than 18%.
Chandra said festive-season demand could provide an additional boost to credit growth. The bank expects lending across retail, agriculture, MSME and corporate segments to increase by a further 1–2% during the December quarter.
PNB Maintains Selective Corporate Lending Strategy
Although corporate loan sanctions are growing at 17–18%, actual growth in PNB’s corporate loan book remains lower at approximately 10–11%.
Chandra attributed the difference to the bank’s strategy of reducing exposure to low-yielding corporate advances rather than pursuing loan growth at the expense of profitability.
PNB intends to maintain this selective lending approach during the second half of FY27.
With improving asset quality, stronger core earnings and growing demand across key lending segments, PNB is positioning itself for further profit growth. However, the timeline for achieving the ₹6,000-crore quarterly net profit milestone remains uncertain.
