Q3 2026 Punjab National Bank Earnings Call Transcript
Key Points
- Punjab National Bank (BOM:532461) reported a YoY growth rate of 9.5% in its global gross business, reaching INR28.92 trillion as of December 2025.
- The bank's asset quality improved significantly, with GNPA reducing to 3.19% from 4.09% YoY, and net NPA decreasing to 0.32% from 0.41%.
- Operating profit for Q3 increased by 13% YoY to INR7,481 crore, surpassing the guidance of 8% to 9%.
- The bank's digital initiatives have shown significant results, with 95% of transactions being digital and the launch of new digital products like Digi Saarthi.
- Punjab National Bank (BOM:532461) maintained a strong capital adequacy ratio of 16.77%, well above the regulatory requirement.
- The bank's net interest margin (NIM) declined due to a reduction in the yield of advances and limited deposit rate cuts, with domestic NIM at 2.65% and global NIM at 2.52%.
- Despite a strong quarter, the bank did not release provisions from a previously standard account, impacting potential profitability.
- The bank's credit cost appeared elevated at 0.46% due to additional floating provisions made for future ECL implementation.
- Investment yields declined, attributed to market conditions and previous treasury profits, impacting overall income.
- The bank's guidance for credit growth remains conservative at 11% to 12%, despite achieving a 10.9% growth rate in the first nine months.
Ladies and gentlemen, good day, and welcome to Punjab National Bank Q3 FY26 earnings conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Palak Shah from Elara Securities Private Limited. Thank you, and over to you, ma'am.
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Hello, everyone, and welcome to Q3 FY26 earnings conference call of Punjab National Bank. Today, we have with us the management of the bank headed by Mr. Ashok Chandra, MD and CEO; Mr. M. Paramasivam, Executive Director; Mr. Bibhu Prasad, Executive Director; Mr. D. Surendran, Executive Director; and Mr. Amit Kumar Srivastava, Executive Director.
With this introduction, I would like to hand over the call to Mr. Ajay Kumar Singh, General Manager, Strategic Management and Economic Advisory Division, to read out the disclaimer statement, post which MD sir will address the conference. Thank you, and over to
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