PNB

Rises 3% After Mixed Q4 Results; Analysts Highlight Margin Pressure, See Up to 25% Upside

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(PNB) advanced around 3–3.5%, touching an intraday high of ₹111.74 on the NSE, following the announcement of its Q4FY26 results, which came in ahead of market expectations despite some underlying pressures. Q4FY26 Performance Overview The state-owned lender posted a net profit of ₹5,225 crore for the March 2026 quarter, marking a 14% year-on-year increase from ₹4,567 crore. However, net interest income (NII) declined 3.5% YoY to ₹10,380 crore compared to ₹10,756 crore in the same period last year. Margins Under Watch reported a domestic net interest margin (NIM) of 2.61% for Q4FY26, down from 2.96% in the corresponding quarter last fiscal, indicating pressure on core lending profitability. Improvement in Asset Quality On the asset quality front, gross NPAs improved significantly to 2.95%, down from 3.95% a year ago. Net NPAs also eased to 0.29% from 0.32%, reflecting better balance sheet health. Provisioning Trends Provisions for the quarter stood at ₹424 crore, lower than ₹1,150 crore in the previous quarter, though slightly higher than ₹360 crore reported in the same period last year. Business Growth Metrics Total term deposits grew 10.9% YoY to ₹11.01 trillion as of March 31, 2026 Retail loan book expanded 8.3% YoY to ₹2.81 trillion Full-Year Performance For FY26, PNB reported a net profit of ₹16,904 crore, registering a modest growth of 3.7% over the previous fiscal. Outlook While analysts remain cautious due to margin compression, the improvement in asset quality and steady business growth have led to an optimistic outlook, with potential upside of up to 25% in the stock. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.