Are Punjab National Bank latest results good or bad?

Punjab National Bank's latest financial results for the quarter ended December 2025 present a mixed picture. The bank reported a net profit of ₹5,100.15 crores, reflecting a year-on-year growth of 13.13% and a sequential increase of 4.01%. This profit growth is supported by a total income of ₹37,253.08 crores, which shows a year-on-year expansion of 7.20% and a sequential growth of 2.87%.
However, the results also highlight some concerning trends. The net interest margin (NIM) contracted to 2.60% from 2.93% a year earlier, indicating pressures on profitability from the competitive deposit environment. Additionally, the gross non-performing assets (NPAs) ratio improved to 3.45% from 4.09% a year ago, suggesting ongoing efforts in asset quality management, although the bank still faces challenges in maintaining its margins.

The bank's provision coverage ratio remains strong at 96.91%, providing a buffer against potential credit losses. Furthermore, the capital adequacy ratio is healthy at 16.77%, which supports the bank's capacity for growth and resilience against financial stress.

Overall, while Punjab National Bank demonstrated solid profit growth and improvements in asset quality, the contraction in net interest margins and reliance on non-interest income raise questions about the sustainability of its profitability. The company saw an adjustment in its evaluation, reflecting these mixed operational trends and financial metrics.