Punjab National Bank — Q4 FY26 earnings call
Summary generated by AI from the official transcript Punjab National Bank filed with BSE on 12 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Punjab National Bank reported Q4 FY26 net profit of INR5,225 crores, up 14.4% year-on-year, with operating profit at INR7,500 crores, up 10.7% from the year-ago quarter. Gross NPA fell to 2.95% and net NPA to 0.29% as of March 2026, while advances grew 12.7% year-on-year to INR12.59 lakh crores despite a reduction in IBPC exposure. Management said domestic NIM stood at 2.61% for Q4 and full-year net profit growth was 9.2%, above the bank's earlier guidance of 8% to 9%.
Numbers mentioned
Net profit: INR5,225 crores (Q4 FY26)
p. 4
“Net profit of the bank for Q4 of FY '26 stands at INR5,225 crores as against INR4,567 crores for Q4 FY '25, depicting a healthy Y-o-Y growth of 14.4%.”
Ashok Chandra, page 4 of the filed PDF · View the filing
Operating profit: INR7,500 crores (Q4 FY26)
p. 4
“Operating profits for the Q4 INR7,500 crores as against INR6,776 crores for Q4 of 2025.”
Ashok Chandra, page 4 of the filed PDF · View the filing
Advances growth: 12.7% Y-o-Y (FY26)
p. 4
“advances grew by 12.7% Y-o-Y to INR12.59 lakh crores despite INR18,231 crores reduction in IBPC exposure”
Ashok Chandra, page 4 of the filed PDF · View the filing
Gross global business: INR29.7 lakh crores (FY26)
p. 4
“Our gross global business reached INR29.7 lakh crores, marking a healthy 10.7% Y-o-Y growth.”
Ashok Chandra, page 4 of the filed PDF · View the filing
Global deposits: INR17.11 lakh crores (FY26)
p. 4
“Global deposits of the bank have reached to INR17.11 lakh crores, up by 9.2% on a Y-o-Y basis.”
Ashok Chandra, page 4 of the filed PDF · View the filing
CD ratio: 73.6% (FY26)
p. 4
“CD ratio of the bank is at comfortable level of 73.6%”
Ashok Chandra, page 4 of the filed PDF · View the filing
CASA ratio: around 37% (FY26)
p. 4
“the CASA ratio of the bank has stabilized at around 37% and consistent 37% in all the 4 quarters of the financial year”
Ashok Chandra, page 4 of the filed PDF · View the filing
Domestic NIM: 2.61% (Q4 FY26)
p. 4
“our domestic NIM stood at 2.61% for Q4 whereas global NIM stood at 2.47%”
Ashok Chandra, page 4 of the filed PDF · View the filing
Return on Assets: 0.89% (FY26)
p. 5
“Return on Assets at the level of 0.89% for FY '26, as against the 0.97% for FY '25”
Ashok Chandra, page 5 of the filed PDF · View the filing
Return on Equity: 15.67% (FY26)
p. 5
“Return on equity stands at 15.67% for FY '26.”
Ashok Chandra, page 5 of the filed PDF · View the filing
Tangible book value per share: INR102.95 (as on 31st March 2026)
p. 5
“Our tangible book value per share as on 31st March 2026 is INR102.95 which was significantly improved from the level of INR84.83 as on 31st March 2025.”
Ashok Chandra, page 5 of the filed PDF · View the filing
Cost-to-income ratio: 51.79% (FY26)
p. 5
“the same has reduced to 51.79% in FY '26 as against 54.59% in FY '25”
Ashok Chandra, page 5 of the filed PDF · View the filing
Gross NPA: 2.95% (as on 31st March 2026)
p. 5
“our GNPA has reduced to 2.95% as on 31st March 2026 from 3.95% as on March '25”
Ashok Chandra, page 5 of the filed PDF · View the filing
Net NPA: 0.29% (as on 31st March 2026)
p. 5
“the net NPA percentage, which was 0.40% as on March '25, has reduced to 0.29% as on March '26”
Ashok Chandra, page 5 of the filed PDF · View the filing
Provision Coverage Ratio: 97.14% (as of March '26)
p. 5
“Our PCR stands at 97.14% as of March '26, which is well above our guidance of more than 96% for financial year '25- '26.”
Ashok Chandra, page 5 of the filed PDF · View the filing
Slippage ratio: 0.60% (FY26)
p. 5
“our guidance level as slippage ratio for the full year is 0.60%”
Ashok Chandra, page 5 of the filed PDF · View the filing
Total recovery: INR15,501 crores (FY26)
p. 5
“Total recovery stood at INR4,082 crores for Q4 FY 2026 and for the financial year 2026 is INR15,501 crores.”
Ashok Chandra, page 5 of the filed PDF · View the filing
Capital adequacy ratio (CRAR): 17.74% (as on March 2026)
p. 5
“Our capital adequacy is 17.74% as on March 2026 compared to 17.01% as of March 2025, which is 73 basis points above March 2025.”
Ashok Chandra, page 5 of the filed PDF · View the filing
CET1 capital: 13.62% (as on March 2026)
p. 5
“Our CET1 capital stands at 13.62% against a regulatory requirement of 8%.”
Ashok Chandra, page 5 of the filed PDF · View the filing
Digital sanctions and disbursements: INR20,873 crores (Q4 FY26)
p. 6
“We have sanctioned and disbursed more than INR20,873 crores through digital mode in Q4 to 4.8 lakh customers.”
Ashok Chandra, page 6 of the filed PDF · View the filing
SMA-0,1,2 (total): 3.30% of total advances (as on March 2026)
p. 8
“The actual number is 3.30% without percolation effect, it is lowest ever in our bank now.”
Ashok Chandra, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Global NIM — 2.6% to 2.7% · FY27
stated firmly by Ashok Chandra
p. 4
“We expect our global NIM to remain in the range of 2.6% to 2.7% for financial year '26-'27.”
Ashok Chandra, page 4 of the filed PDF · View the filing
NIM trajectory — next quarter
stated firmly by Ashok Chandra
p. 4
“We expect the margins to improve moving forward and our NIM to witness Q-o-Q increase from the level of Q4 '25-'26.”
Ashok Chandra, page 4 of the filed PDF · View the filing
Branch network — 250 branches · FY27
stated firmly by Ashok Chandra
p. 3
“We added 144 branches in FY '26 and plan to open 250 more in current financial year.”
Ashok Chandra, page 3 of the filed PDF · View the filing
NII growth — 7% · FY27
stated conditionally by Ashok Chandra
p. 13
“we have kept this NII at 7% as a conservative level because the portfolio under the deposit and portfolio under the asset side, still a lot of things have to happen in the system”
Ashok Chandra, page 13 of the filed PDF · View the filing
RAM share of credit — 58% in this financial year, 60% in the long run · FY27 and long term
stated as an aspiration by Ashok Chandra
p. 12
“in the RAM we want to bring it to 60% in the long run and around 58% in this financial year”
Ashok Chandra, page 12 of the filed PDF · View the filing
Corporate loan book share — 42% short term, 40% long term · FY27 and long term
stated as an aspiration by Ashok Chandra
p. 12
“we want to bring that share down to, in the long term it is 40%, short term it is 42%”
Ashok Chandra, page 12 of the filed PDF · View the filing
LCR — around 125% · FY27
stated firmly by Ashok Chandra
p. 11
“Around 125% we would like to keep it. And we are at almost at the same level as on March '26, 125%.”
Ashok Chandra, page 11 of the filed PDF · View the filing
IBPC book reduction — further reduction of INR18,000 crores to INR20,000 crores
stated firmly by Ashok Chandra
p. 14
“around INR18,000 crores to INR20,000 crores further it will be reduced. We want to totally come out of this IBPC business.”
Ashok Chandra, page 14 of the filed PDF · View the filing
Wage revision provisioning — 1st November 2027
stated firmly by Ashok Chandra
p. 17
“The wage revision due itself is the 1st November 2027. So financial year '26-27, it doesn't impact at all.”
Ashok Chandra, page 17 of the filed PDF · View the filing
Capital raising — no capital raise · FY27
stated firmly by Ashok Chandra
p. 15
“this year also INR5,890 crores AT1 bond plus Tier 2, they are completing now. And we are not going to raise any capital.”
Ashok Chandra, page 15 of the filed PDF · View the filing
ECL implementation timeline — 1 or 2 years instead of 5
stated as an aspiration by Ashok Chandra
p. 17
“And that too had to implemented in 5 years. We don't require 5 years, I can tell you. We will do it in 1 or 2 years itself.”
Ashok Chandra, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said full-year slippages actually declined year-on-year, Q4 is seasonally elevated due to MSME/Agri review renewals, and total SMA-0,1,2 stood at 3.30%, the lowest ever.
Answered by Ashok Chandra
Asked by Ashok Ajmera: Why did slippages rise this quarter while SMA-2 fell sharply, and what is the overall SMA color?
p. 7
“the slippages is INR2,758 crores and if you compare it with the last financial year '24-'25, that time the slippages was INR3,001 crores”
Ashok Chandra, page 7 of the filed PDF · View the filing
Management pointed to strong capital adequacy and an additional floating provision to cover ECL requirements from April 2027.
Answered by Ashok Chandra
Asked by Ashok Ajmera: How is the bank prepared for RBI's finalized ECL guidelines and additional provisioning needs?
p. 8
“we have enough cushion to take care of any requirement which will come on account of implementation of ECL from 1st of April 2027”
Ashok Chandra, page 8 of the filed PDF · View the filing
Management attributed it to an actuarial (AS-15) gain from hardening bond yields offsetting lower treasury income, not one-time manipulation.
Answered by Ashok Chandra
Asked by Ashok Ajmera: Why did employee cost fall sharply quarter-on-quarter?
p. 12
“Total impact of, positive impact is INR2,121 crores.”
Ashok Chandra, page 12 of the filed PDF · View the filing
Management said the NII guidance is conservative given uncertainty in the corporate loan book and reliance on portfolio rebalancing toward RAM segments.
Answered by Ashok Chandra
Asked by Jayant Kharote: Why is NII guided to grow only 7% despite NIM expansion and 12-13% credit growth?
p. 13
“we can't forecast that my NII can grow at 12% to 13% since our credit growth is happening at 12% to 13%. That doesn't happen.”
Ashok Chandra, page 13 of the filed PDF · View the filing
Management said they need another two quarters for a final number but capital and floating provisions are sufficient.
Answered by Ashok Chandra
Asked by Jai Mundhra: Does the ECL provisioning shortfall estimate of INR9,000-10,000 crores from last quarter still hold after the final circular?
p. 14
“the credit -- the capital adequacy, which the bank is having and the floating provision, which we have kept, it is sufficient to take care of my ECL requirement, which will start from the 1st April”
Ashok Chandra, page 14 of the filed PDF · View the filing
Management expressed confidence citing high PCR, floating provisions and capital adequacy.
Answered by Ashok Chandra
Asked by Param Subramanian: Will the bank be able to sustain over 1% ROA once ECL is implemented?
p. 16
“Having 97% PCR, INR2,000 crores of floating provision in the system and 17.74% for the capital adequacy, I think these 3 things should give the confidence to all the investors that perfectly bank is in a very, very comfortable position.”
Ashok Chandra, page 16 of the filed PDF · View the filing
Management gave specific yield figures showing MSME and domestic yields exceeding corporate yield.
Answered by Ashok Chandra
Asked by Ashlesh Sonje: What is the yield differential between the corporate book and the RAM book?
p. 18
“Corporate yield on standard advance is 7.55%. And MSME standard advance yield is 9%.”
Ashok Chandra, page 18 of the filed PDF · View the filing
Risks flagged
Deposit rates remained sticky and did not fully offset yield compression on advances
p. 4
“deposit rates remained a sticky and did not fully compensate for the compression in yield on advances”
Ashok Chandra, page 4 of the filed PDF · View the filing
Uncertainty in the corporate loan book affecting NII forecasting
p. 13
“Corporate loan book, every day there is a challenge. So, there is a uncertainty in the corporate loan book”
Ashok Chandra, page 13 of the filed PDF · View the filing
Potential geopolitical impact from the Middle East crisis on exposures
p. 8
“any eventuality which comes because of the Middle East crisis or anything”
Ashok Chandra, page 8 of the filed PDF · View the filing
AFS reserves fluctuation due to market decline on a specific asset around March
p. 16
“March 26, what has happened because of the crisis, market has, deeply it has fall down in that particular day”
Ashok Chandra, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.