Punjab National BankPNB: Domestic NIM 2.74%, profit ₹5,532 Cr, ECL hit cut to ₹8,000 Cr

Punjab National Bank's Q2 FY27 call, held on 16 October 2026, reported domestic net interest margin up 10 basis points to 2.74% and net interest income of ₹11,601 crore, up 10.8%.

Net profit was ₹5,532 crore, up 12.8%, and core operating profit rose 29.4% to make up 79% of operating profit. Net NPA fell to 0.25%, gross NPA was 2.55% and provision coverage was 97.32%. The bank raised $2.7 billion of FCNR(B) deposits, above the $2.5 billion target, and used it to shed bulk deposits and CDs. Management cut its estimate of the one-time ECL transition hit to about ₹8,000 crore from ₹9,000 to ₹10,000 crore, with about ₹5,000 crore left to provide.

It expects another 7 to 9 basis points of margin in Q3 from the repo hike, but treasury income was only ₹753 crore and recovery guidance is now ₹12,000 to ₹13,000 crore. Management gave no restatement of the gold loan year-end goal and did not resolve a treasury table mismatch.