The Managing Director and CEO of Punjab National Bank, Ashok Chandra, expressed confidence that the bank's profit will exceed the mark of 20,000 crore rupees in the current financial year, based on stable financial performance over the last four quarters.
The public sector lender earned a net profit of 16,904 crore rupees in the previous fiscal year. Chandra told PTI in an interview that since the beginning of the second quarter of the last fiscal year, the bank has been demonstrating a net profit exceeding 5,000 crore rupees quarterly. He noted that this trend is continuing in the first quarter of the current fiscal year.
According to him, with continued profitable growth, the bank will reach and surpass the figure of 5,000 crore rupees in every quarter. Responding to the question of achieving the 20,000 crore rupee target in FY27 at current rates, Chandra stated that it is entirely achievable if a net profit of 5,000 crore rupees is recorded quarterly.
To achieve the set goal, the bank will focus significant efforts on conducting large-scale customer outreach activities quarterly. The main areas for asset growth will be the retail sector, agriculture, MSMEs, and self-help groups. During the current financial year, lending is expected to grow by 12–13 percent, while deposits are projected to grow by 9–10 percent.
Furthermore, Chandra announced that in the third quarter of the current financial year, the bank will begin engaging in acquisition financing, as the Reserve Bank recently opened this opportunity to lenders. Earlier this year, the Reserve Bank published final guidelines for banks to finance acquisitions, increasing the credit limit to 75 percent of the transaction value compared to the 70 percent proposed in the draft rules.
He emphasized that the acquisition financing market is very large and offers numerous opportunities. After the approval of the acquisition financing policy at the last board meeting, the bank is looking for a suitable partner to start operations in this area, possibly from the third quarter. Initially, the bank plans to work with domestic entities, which will help diversify the asset portfolio.
The RBI has set several conditions for banks engaged in such activities starting July 1, including a corporate guarantee from the acquiring company and a requirement that the debt-to-equity ratio does not exceed 3:1 after permanent acquisition. The RBI also stipulated that shares or convertible bonds acquired by the company must be free of encumbrances; the borrower must have net worth of at least 500 crore rupees and three years of net profit, and non-listed entities must have an investment-grade rating.
CSB Bank, a private lender, reported on Wednesday a 27% increase in net profit for the June quarter, reaching 150 crore rupees. This growth was driven by an increase in core income.
Last year, the bank earned 119 crore rupees in profit. The bank's total income increased to 1,516 crore rupees compared to 1,286 crore rupees the previous year. According to CSB Bank's regulatory reporting, interest income grew to 1,287 crore rupees from 1,041 crore rupees.
The bank's net interest income also increased by 26%, amounting to 479 crore rupees compared to 379 crore rupees in the same quarter of the previous fiscal year. Furthermore, the quality of the bank's assets improved: gross non-performing assets (NPA) decreased to 1.75% of total loans as of June 30, 2026, compared to 1.84% the previous year.
Similarly, net NPAs decreased to 0.39% from 0.66% at the end of the first quarter of the previous fiscal year. As a result, reserves and unforeseen expenses decreased to 49 crore rupees compared to 61 crore rupees allocated in the same quarter the previous year. However, the bank's capital adequacy ratio decreased to 19.96% from 21.71% as of June 30, 2025.
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.
The public sector lender Reserve Bank of India reported on Friday a 13 percent increase in net profit, reaching 1324 crore rupees for the June quarter.
For the reporting period, the bank's total revenue increased to 10,678 crore rupees. This figure is higher than 10,360 crore rupees for the same period in the 2026 fiscal year. The growth in total revenue was driven by an increase in interest income.
The bank's net profit in the current quarter amounted to 1324 crore rupees, compared to 1169 crore rupees in the same quarter of the previous fiscal year. However, operating profit decreased to 2,186 crore rupees from 2,304 crore rupees the year before.
The bank demonstrated an improvement in asset quality. Gross Non-Performing Assets (NPA) reduced to 2.60 percent of gross loans as of the end of June, down from 3.13 percent the previous year. Net NPAs remained stable at 0.49 percent as of June 30, 2026.
As a result of this improvement, provisions for bad loans significantly decreased—they fell from 468 crore rupees at the end of June 2025 to 346 crore rupees.
Furthermore, the bank's capital adequacy ratio improved to 18.28 percent, showing an increase compared to 17.66 percent recorded at the end of the first quarter of the 2026 fiscal year.
