Punjab National Bank shares rose nearly 5% in early trade on Monday after the state-run lender reported a sharp increase in profit for the June quarter, supported by steady growth in lending income and continued improvement in asset quality.
The stock rose as much as 4.83% during the session and was trading at Rs 111.10, up about 5.33%, on the NSE at around 9:25 a.m. It had settled at Rs 105.77 in the previous session.
The earnings indicate that Punjab National Bank maintained profit growth while further reducing bad loans, even as it set aside more money for potential credit losses during the quarter.
Profit Rises Despite Higher Provisions
Punjab National Bank reported a net profit of Rs 5,253 crore for the quarter ended June 2026, compared with Rs 1,675 crore a year earlier. That represents a 214% increase from the year-ago period and a rise of about 1% from the previous quarter.
Net interest income, a measure of income earned from lending activities, increased 2% year-on-year to Rs 10,798 crore from Rs 10,578 crore. It rose 4% from the March quarter.
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Operating profit grew 6% from a year earlier to Rs 7,519 crore, compared with Rs 7,081 crore, and was largely unchanged on a sequential basis.
Operating expenses declined 13% year-on-year to Rs 7,613 crore.
The lender set aside provisions of Rs 792 crore during the quarter, compared with Rs 396 crore a year earlier. Provisions, however, declined 13% from the previous quarter.
The bank's net interest margin expanded by 3 basis points to 2.50%.
Asset Quality Improves Further
Punjab National Bank continued to strengthen its asset quality during the quarter.
Gross non-performing assets declined to 2.78% from 2.95% in the previous quarter, while net non-performing assets eased to 0.28% from 0.29%.
Stock Remains Lower for the Year
Despite Monday's gains, Punjab National Bank shares remain down 11.5% so far in 2026. Over the same period, the Nifty Next 50 has gained nearly 3%.
The bank's market capitalisation stood at Rs 1,27,571.7 crore at the close of trading on Friday.
The stock is trading at a price-to-earnings ratio of 5.9 times.
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