PNB Expects ₹1,500 Cr from Treasury Income in Q3

State-owned Punjab National Bank (PNB) expects about Rs 1,500 crore in treasury income during the third quarter and an improvement in margins.

During the first two quarters, the bank has booked treasury income of Rs 1,800 crore and expects Rs 1,500 crore during the ongoing quarter, PNB MD and CEO Ashok Chandra said on the second-quarter financial numbers.

On the margin, he said, repricing of deposits has already started, and NIM would see improvement in the second half.

On a conservative basis, he said, the bank will see a 5 basis points improvement in NIM in the third quarter and a 10 basis points increase in the fourth quarter.

The bank has given the guidance of Net Interest Margin (NIM) of 2.8-2.9 per cent in FY26.

For the second quarter ended September 30, 2025, PNB has reported a 14 per cent rise in standalone net profit at Rs 4,904 crore against Rs 4,303 crore in the year-ago period.

The total income in the quarter under review rose to Rs 36,214 crore from Rs 34,447 crore, PNB said in a regulatory filing.

The lender's interest income also increased to Rs 31,872 crore, from Rs 29,875 crore in the same quarter a year ago.

Its net interest income (NII), however, declined to Rs 10,469 crore from Rs 10,517 crore in Q2 FY25.

During the period, the operating profit of the bank hit a new high of Rs 7,227 crore compared to Rs 6,853 crore in the same quarter a year ago.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 3.45 per cent of gross advances at the end of the June quarter from 4.48 per cent a year ago.

Similarly, net NPAs, or bad loans, declined to 0.36 per cent against 0.46 per cent in the year-ago period.

Its provision coverage ratio improved by 24 bps to 96.91 per cent as of September 2025 from 96.67 per cent in September 2024.

The total business of the bank grew by 11 per cent to Rs 27,86,673 crore from Rs 25,20,246 crore as of September 2024.

Total deposits registered a growth of 11 per cent to Rs 16,17,080 crore from Rs 14,58,342 crore at the end of the second quarter of the previous fiscal, and total advances increased by 10 per cent to Rs 11,69,592 crore against Rs 10,61,904 crore.