PNB Q4 FY26 Results: Profit up 14.4%, dividend ₹3

Key Q4 FY26 highlights

Punjab National Bank (PNB) reported a year-on-year rise in net profit for the quarter ended March 2026 (Q4 FY26), supported by higher interest income and lower stress in its loan book. The state-owned lender posted net profit of ₹5,225 crore, up 14.4% from ₹4,567 crore in the year-ago quarter. The bank also reported a further improvement in asset quality, with gross non-performing assets (GNPA) falling below 3%. Alongside the results, PNB recommended a dividend for FY26, subject to shareholder approval. The numbers offer a read-through on earnings stability even as some income lines were mixed.

Profit growth and income mix

PNB said its total income in Q4 FY26 fell to ₹36,319 crore from ₹36,705 crore a year earlier. Even with the decline in total income, the bank reported higher net profit. The difference was partly shaped by movements in key banking income and expenses during the quarter. The profit growth also came alongside a visible reduction in reported credit stress metrics, which can influence provisioning and profitability across cycles.

Net interest income and interest income trend

Interest income in Q4 FY26 rose to ₹32,157 crore from ₹31,989 crore in the corresponding quarter last year. However, net interest income (NII) declined nearly 4% year-on-year to ₹10,380 crore from ₹10,757 crore. This combination indicates that while interest earned increased, the net spread between interest earned and interest paid narrowed compared with the previous year’s quarter. In its FY25 commentary included in the broader context, PNB had earlier indicated that quarterly NII can see pressure due to rate changes impacting the asset side.

Asset quality improves further

On asset quality, PNB’s GNPA improved to 2.95% of gross advances in Q4 FY26, compared with 3.95% at the end of March 2025. On a sequential basis, GNPA fell to 2.95% from 3.19% in the previous quarter. Net NPA also moved lower, coming down to 0.29% from 0.40% as of March 2025. Sequentially, net NPA eased to 0.29% from 0.32%. These movements point to continued clean-up and improved recognition and recovery outcomes as reflected in the ratios reported.

Provisions and quarter-on-quarter shift

Provisions in Q4 FY26 were ₹424 crore. This was lower than ₹1,150 crore in the previous quarter, but higher than ₹360 crore reported in the year-ago period, as per the numbers shared with the results update. Provision trends matter because they can amplify or dampen quarterly profitability, particularly for lenders that have seen multi-year cycles of elevated slippages and recoveries.

Dividend recommendation for FY26

Along with the quarterly numbers, PNB recommended a dividend of ₹3 per equity share for FY26. The bank described this as 150% of the face value of ₹2 per share. The dividend payout is subject to approval by shareholders at the upcoming Annual General Meeting. Dividend declarations are closely tracked in PSU banks because they reflect both profitability and capital planning priorities.

Business growth: deposits and advances

PNB reported an 11% rise in global business to ₹2,972,000 crore in Q4 FY26, while domestic business grew nearly 10% to ₹2,845,000 crore. Sequentially, global business increased 2.8% and domestic business rose 3%. Global deposits rose 9.25% year-on-year and 3.08% quarter-on-quarter to ₹1,711,000 crore. Advances increased 13% year-on-year and 2.45% quarter-on-quarter to ₹1,261,000 crore. These figures indicate sustained balance-sheet growth alongside improving asset quality ratios.

CASA ratio and funding profile

The bank’s CASA ratio improved to 73.7% in Q4 FY26 from 71.28% in the year-ago period. CASA is watched as an indicator of low-cost deposit mobilisation and funding resilience. A higher CASA ratio can support margins over time, although quarter-level NII can still vary due to rate and repricing dynamics.

Stock market reaction

After initial weakness, PNB shares recovered losses to trade about 0.5% higher at ₹109.25 on the BSE at around 1:25 pm. The intraday move came as the market assessed a profit rise alongside a year-on-year decline in NII and the dividend recommendation.

Snapshot table

Why the numbers matter

PNB’s Q4 FY26 print shows profit growth alongside mixed income lines, with NII lower year-on-year even as interest income rose. For investors, the sharper focus is often on the sustainability of asset-quality improvement and the provisioning trend, because these are key swing factors in PSU bank earnings. The fall in GNPA and net NPA ratios, both year-on-year and sequentially, is a notable balance-sheet signal in the context provided.

What to watch next

The dividend will be decided after shareholder approval at the bank’s Annual General Meeting. Markets will also track whether the NII trend stabilises in coming quarters, and whether the bank maintains its lower NPA ratios while sustaining advances growth. Subsequent quarterly filings will provide updated detail on income, margins, and provisioning behaviour.