Punjab National Bank Q2 FY26 — ₹4,904 Cr Profit, GNPA 3.45%, and a 129-Year Comeback Story: From Fraud Files to Fintech Feels
1. At a Glance — India’s OG “Swadeshi Bank” Learns How to Swipe Right on Profits
If Indian banking had a nostalgia league, Punjab National Bank (PNB) would be its Sachin Tendulkar — the veteran that’s finally found form again. With a market cap of ₹1.31 lakh crore, Q2 FY26 profit of ₹4,904 crore, and a stock price of ₹114, PNB has pulled off what every government uncle dreams of — steady returns without scandals.
The bank’s GNPA has fallen to 3.45% (down from a painful 11.78% in FY22), NNPA at 0.41%, and PCR at a robust 96.7% — meaning the ghosts of old NPAs have finally been exorcised.
It now manages ₹27.9 lakh crore in total business, has over 10,000 branches, and operates in 6 countries — including a shiny GIFT City presence for international bragging rights. Basically, it’s the comeback kid of Indian PSUs — from PNB scam memes to PNB app updates.
2. Introduction — When the “Fraud Bank” Turned into the “Fixed Bank”
There was a time when Punjab National Bank was synonymous with “Fugitive Billionaire Starter Pack.” After all, who can forget the Nirav Modi-Lavasa-LOU era, when the bank made more headlines than profits? But the turnaround since FY22 has been nothing short of dramatic.
Under new leadership and government-backed recapitalization, PNB did a full gym transformation arc — from bloated losses to 17% ROE, from NPAs in double digits to single digits, and from excuses to execution.
It’s not glamorous like HDFC or ICICI; it’s more like that old government ambassador car — sturdy, slow, but finally with new paint.
And in a world where PSU banks are slowly catching up to fintech, PNB quietly built a 20.8 crore-strong digital base, proving that even Sarkari banks can go digital without crashing every Friday.
3. Business Model — The Desi Banking Buffet
PNB’s model is as traditional as your dadi’s recipe book — diverse, reliable, and a bit overcooked sometimes.
Business Mix (9M FY25):
Corporate / Wholesale Banking – 42%
Treasury – 29%
Retail Banking – 27%
Others – 2%
Advances Composition:
Corporate & Others – 43%
Retail – 25%
Agriculture – 17%
MSME – 15%
Translation? It’s still heavy on corporate loans — the sector that gave it heartburn in 2018 — but now cushioned by better provisioning and retail growth.
The CASA mix at ~42% shows it’s holding depositor loyalty, while the Cost of Deposits (5.24%) and Yield on Advances (8.38%) maintain healthy spreads.
PNB ONE app now covers everything from QR payments to Demat, and the corporate app PNB One Biz serves 58,000 firms — a solid digital play for a PSU.
