1. Opening Hook
PNB just delivered its highest-ever quarterly profit, and instead of celebrating, management calmly stuffed ₹955 crore into a floating provision drawer. Because why not plan for 2027 in 2026?
While markets were busy obsessing over NIM compression, PNB was busy opening branches, killing NPAs, selling insurance stakes, and hoarding capital like a banker who’s seen enough RBI circulars to last a lifetime.
Margins dipped, yes. But asset quality improved, capital ratios strengthened, and digital adoption quietly went mainstream. This wasn’t a flashy quarter — it was a “boring-but-deadly” PSU bank performance.
Stick around. The interesting part is how PNB is preparing for ECL without spooking earnings — and why management looks unusually confident this time. Things get spicier later.
2. At a Glance
- Net Profit ₹5,100 cr (+13%) – Record quarter, still chose pain over partying.
- NII ₹10,533 cr – Marginal growth, repo cuts did their thing.
- GNPA 3.19% – Down from 4.09%, bad loans clearly got the memo.
- NNPA 0.32% – Almost rounding-error territory.
- PCR 96.99% – Provisioning so thick RBI would approve in silence.
- RoA 1.06%, RoE 17.8% – PSU math finally working.
- Credit Growth 10.9% YoY – Slow, steady, and deliberately selective.
3. Management’s Key Commentary
“We have demonstrated steady progress across all
key metrics.”
(Translation: No fireworks, just execution. The boring kind investors secretly love.) 😏
“We opened 82 branches and will open 100 more in six months.”
(Translation: PSU banks still believe physical presence prints CASA.)
“We consciously created ₹955 crore floating provisions.”
(Translation: Profit could’ve crossed ₹6,000 cr, but future RBI letters scared us more.)
“Our underwriting over the last 5.5 years shows NPAs of just 0.41%.”
(Translation: Old PNB died somewhere around 2020.)
“NIM pressure is temporary due to repo cuts and deposit strategy.”
(Translation: Don’t panic, Q2 FY27 is when the magic reappears.)
“Every third loan is now digital.”
(Translation: PSU bank… but make it 2026.)
4. Numbers Decoded
| Metric | Q3 FY26 | What It Really Means |
|---|---|---|
| Net Profit | ₹5,100 cr | Strong core + treasury help |
| NIM (Domestic) | 2.65% | Repo cut hangover |
| Credit Cost | 0.46% | Elevated only by choice |
| GNPA | 3.19% | Structural cleanup continues |
| NNPA | 0.32% | Near-best-in-class PSU |
| CAR | 16.77% | Capital cushion intact |
| CET-1 | 12.52% | No dilution anxiety |
