State-run Punjab National Bank is implementing comprehensive digital services to attract younger customers, according to reports from The Times of India. PNB managing director and CEO Ashok Chandra stated that the bank is facilitating loans to startups through digital processes without paperwork requirements. The bank has introduced special savings accounts for students and credit card offers specifically designed for young customers. Additionally, PNB is working to establish partnerships with educational institutions to reach the younger demographic.
The bank delivered exceptional financial results with net profit rising 12.8% to ₹5,532 crore in the September quarter, as reported by The Times of India. Chandra expressed optimism about sustaining this momentum, citing that deposit and credit growth remain on track for the current financial year. The bank's operating profit reached ₹7,532 crore, marking the third straight quarter above ₹7,500 crore as core profitability deepened. Net Interest Income (NII) grew 10.8% year on year and 7.4% sequentially to ₹11,601 crore, beating guidance, with management signalling room for another 7-9 bps NIM uptick in the coming quarter.
The bank's global deposits rose 9.9% year on year to ₹17.77 lakh crore, aided by a successful SC&R campaign that raised USD 2.7 billion against a target of USD 2.5 billion. These funds were used to pare high-cost bulk deposits and CDs, reducing their combined share to about 17% and cutting the CD book from roughly ₹60,000 crore to ₹40,000 crore. Domestic cost of deposits fell to 4.97% in September 2026 from 5.18% a year earlier, while domestic NIM rose 10 bps sequentially to 2.74% and global NIM improved to 2.58%. The improved funding profile supports ongoing margin expansion and better spreads.
The bank's operational metrics showed significant improvement with return on assets at 1.05% and return on equity at 17.32%, underlining enhanced earnings quality. Core operating profit excluding recoveries and treasury gains surged 29.4% year on year and 8% sequentially, forming 79% of total operating profit. The cost-to-income ratio edged down to 50.45% from 51.20%, while tangible book value per share rose to ₹111.94 from ₹95.92, enhancing long-term shareholder value. These improvements demonstrate the bank's focus on operational efficiency and sustainable profitability growth.
