PNB Q1 Results: Slippages narrow from March; FY26 gross NPA seen below 3%

State-run Punjab National Bank Ltd. saw its stock fall from the highs of the day, after it reported its results for the June quarter.Net profit for the quarter halved to ₹1,675 crore from ₹3,252 crore last year. Higher taxes contributed to the dent in PNB’s bottomline during the quarter. Tax expenses at the end of the June quarter stood at ₹5,083 crore from ₹2,017 crore last year.
Net Interest Income (NII) or core income earned by the lender increased by 1% from last year to ₹10,578 crore, which was in-line with the CNBC-TV18 poll expectation of ₹10,511 crore.
Asset quality for PNB improved marginally on a sequential basis. Gross NPA stood at 3.78% from 3.95% in March, while Net NPA stood at 0.38% from 0.4% in March.
For the full year, PNB expects gross NPA to fall below the 3% mark, compared to the 3.78% figure in June 2025.Net Interest Margins (NIMs) are likely to be between 2.8% to 2.9% from the 2.7% figure this quarter.

Fresh gross slippage addition during the quarter stood at ₹1,886 crore, which is lower than the ₹3,001 crore addition in March. The management sees the slippage ratio to be below 1% at the end of the year.

Loan growth for the quarter stood at 11%. More details awaited in the investor presentation. Credit growth for the full year is pegged between 11% to 12%, compared to the 10% growth this quarter.

Shares of PNB are trading 0.8% lower after the earnings announcement at ₹108.36. The stock is up 5.6% so far in 2025.