Punjab National Bank (PNB) reported a 12.8% annual profit gain for the September quarter, while Nirmal Bang upgraded its rating to Buy and set a Rs 137 target, putting its margin outlook and loan quality in focus.
PNB said net profit reached Rs 5,532 crore in the quarter ended Sept. 30, 2026, compared with Rs 4,904 crore a year earlier. Net interest income rose 10.8% to Rs 11,601 crore, and operating profit increased 4.2% to Rs 7,532 crore.
The bank's global net interest margin (NIM) was 2.58%, compared with 2.50% in Q1 FY27. Return on assets (ROA) held at 1.05%, unchanged from the year-earlier quarter. Global advances grew 14.7% year over year to Rs 13,41,194 crore, while deposits rose 9.9% to Rs 17,77,240 crore.
PNB's gross nonperforming asset ratio declined to 2.55% from 3.45% a year earlier, and its net ratio fell to 0.25% from 0.36%. The slippage ratio was 0.77% in Q2 FY27, compared with 0.71% in Q2 FY26.
NDTV Profit's account of the Nirmal Bang research note says the brokerage raised its earnings estimates by 5% to 8%, using NIM assumptions 3 to 4 basis points higher for FY27E and FY28E. The note also expects lower credit costs in FY27E and cuts its other-income estimate by 2% on the expectation of reduced treasury income.
The note projects ROA at 1% in FY27E and 0.95% in both FY28E and FY29E, up from its earlier 0.9% estimate. It sees rate increases and a shift toward higher-yield loans supporting margins, with operating costs staying contained. It also warns that credit costs could rise from low levels and recoveries may ease; stronger fee income could offset some of that pressure.
ET Now's Oct. 19 roundup separately listed Nirmal Bang at Buy with a Rs 137 target. The roundup also showed Elara Capital at Buy with a Rs 140 target and Citi at Sell with a Rs 110 target. The Nirmal Bang note identifies loan growth, margins, credit costs and recoveries as factors behind its outlook.
