PNB global advances grow 14.8% in Q2 FY27 update

Punjab National Bank

reported provisional global advances of ₹13.43 lakh crore at September 30, 2026, up 14.8% year on year. Global business rose 11.95% to ₹31.20 lakh crore, and the stock closed at ₹109.57 on October 1. What happened: Global deposits grew 9.90% to ₹17.77 lakh crore. Domestic advances rose 12.59% to ₹12.59 lakh crore, up 4.55% from June. By my calculation the global credit-deposit ratio is about 75.6%, against 73.92% in June and 72.40% a year ago. Why it matters: Loans are growing about five points faster than deposits. That supports interest income but pushes the bank to pay more for funds. My view: In one quarter, advances grew about 5.4% while deposits grew 3.0%. That is quick for a public sector bank. Growth only helps if net interest margin holds. In Q3 FY26 the cost of deposits was 5.09% and CASA share was 37.1%. If CASA slips and term deposits fill the gap, margin falls. The update also says nothing about asset quality. The stock trades near 6 times earnings and close to book value, so the market already expects thin margins. A stable margin would be the surprise. What I am watching: Q2 FY27 net interest margin against Q1, gross NPA, and a credit-deposit ratio above 76%. Price levels: ₹98.50 support, the 52-week low, and ₹116.60, the September 25 close, as resistance. Stance: Neutral, with a cautious bias on margin. Wait for the Q2 results before adding. I do not hold a position in Punjab National ***** investment advice.