However, sequentially, net profit marginally increased by a little over 0.5% quarter-on-quarter from Rs 5,225 crore reported in the previous three months.
The PSU lender’s net interest income (NII) rose over 2% year-on-year to Rs 10,798 crore during Q1FY27, from Rs 10,578 crore a year ago.
PNB current account savings account deposits rose around 8% year-on-year to Rs 5.69 lakh crore, while total time deposits rose nearly 9% year-on-year to Rs 10.21 lakh crore. Meanwhile, global advances grew around 13% year-on-year to Rs 12.73 lakh crore.
The PSU lender’s return on assets (RoA) increased to 1.04% in Q1FY27 from 0.37% in Q1FY26, but declined from Rs 1.06% in Q4FY26. Meanwhile, return on equity (RoE) stood at 17.33% during the analyzed quarter.
PNB’s asset quality improved, with gross non-performing assets (NPA) declining to 2.78% at the end of the June quarter, from 3.78% a year ago. Gross non-performing assets (GNPA) in absolute terms decreased by Rs 7,292 crore to Rs 35,381 crore from Rs 42,673 crore, while net non-performing assets (NNPA) decreased by Rs 699 crore to Rs 3,433 crore from Rs 4,132 crore in June 2025. Similarly, net doubtful assets, or loans doubtful loans fell to 0.26%, compared to 0.38% in the same period of the previous year.
However, provisions for bad loans rose to Rs 792 crore during the first quarter, compared to Rs 396 crore in the year-ago period. The bank’s capital adequacy ratio improved to 18.13% from 17.5% at the end of the first quarter of the previous financial year.(With contributions from agencies)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of The Economic Times)
