Punjab Natl.Bank Q1 FY27 Results (NSE: PNB)
Signal: Earnings grew
The read
PNB's consolidated PAT surged 174% YoY to ₹5,814 Cr, driven by a 4.7% operating profit increase and a sharp 65.6% drop in tax expense as the base quarter had a one-off high tax charge. Asset quality improved with GNPA falling to 2.78% (lowest in 10 quarters) and CAR rising to 18.11%. However, total income was flat as other income declined sharply (-19.6% YoY); the core interest income grew only 3.1% YoY. The earnings beat is primarily tax-driven, but the underlying operating profit and asset quality trends are supportive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹37,953.75 Cr | -0.12% | 2.92% |
| EBIT | ₹7,662.76 Cr | 4.7% | |
| Net profit | ₹5,814.72 Cr | 174.3% | |
| EPS | ₹5.06 | 175.0% | |
| EBIT margin | 20.19% |
P&L walk
Total income flat YoY (-0.12%) as other income fell 19.6% despite 3.1% growth in interest earned; operating profit rose 4.7% YoY helped by lower operating expenses (employee cost -12%, other opex -14.2%); provisions increased 60.7% YoY but tax expense collapsed 65.6% (prior year had a one-off high tax charge), driving PAT 174% higher.
Segments
Segment data not fully extractable from the provided filing text; standalone segment table shows Treasury, Corporate/Wholesale, and Retail Banking segments.
Key positives
- PAT surged 174% YoY to ₹5,814 Cr, EPS ₹5.06 (+175% YoY).
- GNPA ratio improved to 2.78% (from 3.78% YoY), net NPA 0.28% (from 0.38%).
- Operating profit grew 4.7% YoY despite flat total income, aided by lower employee and other operating expenses.
- Capital adequacy improved to 18.11% (CET1 14.52%), providing room for growth.
- Provision Coverage Ratio (including T/w off) at 97.23%.
Key concerns
- Total income was flat YoY (-0.12%) as other income fell 19.6% (high volatility).
- Interest income growth remains modest at 3.1% YoY, lagging industry loan growth.
- Provisions for NPAs more than doubled (₹80,359 lacs vs ₹34,437 lacs YoY), though partially offset by lower other provisions.
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