The profit of Punjab National Bank for the June quarter significantly increased, showing a growth of 214% compared to the previous year, which was due to a favorable base. Nevertheless, the bank's core operational efficiency remained mixed: the growth in net interest income was moderate, and the net interest margin was below the target set by the lender for the current fiscal year, despite improved asset quality and stable lending growth.
The net profit of the Delhi-based bank reached 5,253 crore rupees in the June quarter, more than tripling compared to the previous year. However, compared to the January-March quarter, the profit grew only slightly, amounting to 5,225 crore rupees.
It is important to note that in the same period last year, the bank recorded an exceptionally low profit of 1,675 crore rupees after transitioning to a lower tax regime, which led to a one-time write-off of 3,324 crore rupees. If this one-time expense is excluded, PNB's profit growth in the first quarter of the 2027 fiscal year will be only 5% year-on-year.
The bank's Net Interest Income (NII) for the June quarter was 10,798 crore rupees, demonstrating a growth of 2% year-on-year and 4% quarterly. The bank had previously forecasted NII growth of 7% during the 2027 fiscal year, following a 2% decline in the 2026 fiscal year. The Net Interest Margin (NIM) in the June quarter was 2.5%, higher than 2.47% in the previous quarter, but lower than 2.70% in April-June 2025. This margin also did not reach the bank's target for FY27 in the range of 2.6–2.7%.
Despite this, the bank's management maintains its forecasts for NIM and NII for the year, explaining that the benefits from deposit rate revisions will become more apparent in subsequent quarters.
Lending growth remained healthy, reaching 12.7%, indicating consistent demand across all segments. However, deposit mobilization grew by only 8.5%, reflecting funding challenges faced by the banking industry.
The bank is counting on attracting deposits from foreign non-residents (FCNR(B)). Management reported that approximately $490 million has already been mobilized under the FCNR(B) scheme and expects this amount to grow to $2–2.5 billion by September 30, following the government's initiative to attract NRI deposits.
The bank's provisions for bad loans decreased to 792 crore rupees in April-June compared to 906 crore rupees in the previous quarter, but almost doubled compared to 396 crore rupees a year earlier. Furthermore, the bank created floating provisions of 390 crore rupees in preparation for the Reserve Bank of India's Expected Credit Loss norms, which will come into effect next year. As of June 30, the bank held floating provisions of 2,435 crore rupees, as stated in the announcement.
The reduction in bad loan provisions coincided with an improvement in asset quality. The Non-Performing Asset (NPA) ratio improved to 2.78% as of June 30, up from 2.95% on March 31 and 3.78% a year earlier. The Net NPA ratio also improved to 0.28% compared to 0.29% on March 31 and 0.38% at the end of June 2025.
The bank's write-off ratio was 0.68% in the June quarter, lower than 0.94% at the end of March and 0.71% a year earlier. Although the write-off ratio decreased, new write-offs rose to 1,996 crore rupees in the first quarter compared to 1,792 crore rupees a year earlier. On a quarterly basis, new write-offs sharply decreased compared to 2,674 crore rupees in the fourth quarter of the 2026 fiscal year.
The results for the June quarter show that PNB's income is increasingly shifting from reducing credit risks to improvements in core banking operations. While asset quality continues to strengthen, maintaining profit growth in the remainder of FY27 will depend on the bank's ability to ensure the recovery of the margin and NII it forecasts, even amid intense competition for deposit mobilization.
Kotak Mahindra Bank reported a significant growth in consolidated net profit for the first quarter of fiscal year 2027 (Q1FY27), which ended in June. Net profit increased by 23% year-on-year (YoY), reaching ₹5,480 crore, compared to ₹4,472 crore in the same period last year. Furthermore, compared to the previous quarter, consolidated net profit showed a growth of 1%.
According to the bank, which operates in the private lending sector, net profit grew by 26% year-on-year to ₹4,123 crore. This growth was driven by an increase in Net Interest Income (NII) and a reduction in provisions.
Net Interest Income (NII) increased by 9% year-on-year to ₹11,266 crore, while other income grew by 8% YoY, reaching ₹3,338 crore. However, the Net Interest Margin (NIM) decreased to 4.53%, compared to 4.67% in the previous quarter and 4.65% a year earlier. The cost of funds slightly increased by 1 basis point (bp) compared to the previous quarter, standing at 4.46%.
The amount of new write-offs increased to ₹1,321 crore for the quarter, up from ₹1,018 crore in Q4FY26, but remained below the figure of ₹1,812 crore recorded in Q1FY26. Provisions and unforeseen expenses decreased by 45% year-on-year but rose by 29% sequentially, amounting to ₹668 crore. The bank's asset quality improved: Gross Non-Performing Assets (GNPA) fell to 1.18% by the end of June 2026 (from 1.20% in March and 1.48% a year earlier). Nevertheless, Net NPAs slightly increased by 2 basis points sequentially, reaching 0.27%.
The volume of net credits increased by 15% year-on-year and 3% quarter-on-quarter (QoQ), reaching ₹5.12 trillion. Credit portfolio growth was 12% in the retail segment and 20% in the institutional segment. In retail, both home loans and mortgage loans saw growth of 15% YoY. In the institutional segment, the corporate credit portfolio increased by 15% YoY, and the MSME portfolio by 20%. The total deposit volume reached ₹5.73 trillion by the end of the quarter, which is 12% more than a year ago (₹5.13 trillion). The average total deposit grew by 14% YoY to ₹5.59 trillion.
Average current account deposits grew by 15% YoY to ₹0.78 trillion, and average fixed savings deposits increased by 16% to ₹1.25 trillion. Average term deposits grew by 14% YoY to ₹3.42 trillion. The bank's CASA ratio stood at 40.3% as of June 30, 2026, compared to 40.9% a year earlier. The loan-to-deposit ratio increased to 89.4% from 86.7% a year earlier. Kotak Mahindra Bank's customer base reached 5 crore by the end of June 2026. The bank maintained a high level of capitalization, with a Basel III capital adequacy ratio of 22.8% and a CET1 ratio of 22.4% as of June 30, 2026.
Jana Small Finance Bank reported a significant increase in net profit for the first quarter of fiscal year 27. During the reporting period from April to June, the bank demonstrated a 52% growth in net profit compared to the same period last year, reaching 155 crore rupees. This success was attributed to a strong increase in net interest income, active growth in the loan portfolio, and expansion of the secured loan portfolio.
Net Interest Income (NII) increased by 33.4% year-on-year, amounting to 782 crore rupees. Meanwhile, other incomes slightly decreased, falling to 215 crore rupees from 235 crore rupees the previous year. The bank's Net Interest Margin (NIM) consistently rose by 30 basis points, reaching 7.5% in the first quarter of FY27.
Provisions and unforeseen expenses slightly decreased to 178 crore rupees in Q1 FY27, compared to 187 crore rupees the previous year and 195 crore rupees in Q4 FY26. Write-offs also decreased sequentially by 13%, totaling 291 crore rupees.
The volume of loans disbursed increased by 26% year-on-year and 4% sequentially, reaching 37,612 crore rupees. The secured portfolio grew by 29% year-on-year and 4% sequentially. The gold loan segment showed the fastest growth, increasing by 113% year-on-year, followed by auto loans, which grew by 78%. Growth in the affordable housing segment reached 29%, and MSME loans grew by 27%. Conversely, the growth of the Loan Against Property (LAP) microloan portfolio slowed to 5% year-on-year.
Currently, the secured portfolio accounts for almost 73% of the total outstanding loans. Meanwhile, the unsecured portfolio grew by 18% year-on-year and 3% sequentially, reaching 10,240 crore rupees. Deposits, in turn, increased by 22% year-on-year, totaling 35,756 crore rupees.
For fiscal year 27, the bank forecasts asset growth of 19–21%, deposit growth of 23–25%, and profit increase of over 80%. The bank also clarified that Jana Holdings and Jana Capital, the current promoters, were classified as being in technical default on the payments of Non-Convertible Debentures (NCD) after extending the maturity of these instruments by six months to provide additional time to sell their stake.
Jana Holdings' stake in the bank decreased from a peak of 44% to 16.9%. Both Jana Holdings and Jana Capital plan to seek approval for de-promoterization from the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) once their stake falls below 9.99%. It was noted that Jana Holdings has not injected capital into the bank since June 2022, has no representation on the bank's board of directors, and there are no cross-holdings between the entities. The bank also assured that there is no cross-default link between the debt of Jana Small Finance Bank and the debt of Jana Holdings or Jana Capital. Although India Ratings placed the bank under 'watch' following actions against Jana Holdings and Jana Capital, the bank stated that operations continue as usual. Meanwhile, CARE Ratings confirmed the bank's rating without any changes.
The public sector bank Indian Bank, based in Chennai, announced a 10% increase in net profit for the first quarter of the current fiscal year, reaching INR 3,273 crore. In the same quarter of the previous fiscal year, the profit was INR 2,973 crore.
According to the report submitted to the regulator, the bank's total income for the June quarter of 2026-27 increased to INR 20,724 crore compared to INR 18,721 crore in the corresponding period of FY 26. Interest income also improved, amounting to INR 18,090 crore versus INR 16,283 crore a year earlier.
Net Interest Income (NII) grew by 17%, reaching INR 7,435 crore compared to INR 6,359 crore in the June quarter of FY 26. Furthermore, the bank's operating profit rose to INR 5,557 crore from INR 4,770 crore recorded in the same quarter last year.
The bank demonstrated an improvement in asset quality: Gross Non-Performing Assets (NPA) decreased to 1.86% of total loans by the end of June, down from 3.01% a year earlier. Similarly, Net NPAs, or bad loans, reduced to 0.15% compared to 0.18% in the previous year.
As a result of these changes, provisions for bad loans were reduced to INR 376 crore in the first quarter, down from INR 387 crore a year ago. The Provision Coverage Ratio (PCR) remained unchanged at 98.2% during the quarter.
The Return on Assets (ROA) improved to 1.34% for June 2026, whereas it was 1.03% in June 2025. Meanwhile, the bank's capital adequacy ratio decreased to 17.80% from 17.99% in the same quarter of FY 26.
