PNB lifts profit 12.8 percent. Goldman Sachs keeps Sell on Punjab National Bank stock

Published on 10/19/2026 at 01:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Punjab National Bank stock posted INR 55.32 billion profit in fiscal 2027's second quarter. Gross bad loans fell to 2.55 percent.

Credit quality shapes the debate

Punjab National Bank reported INR 55.32 billion in net profit for the second quarter of fiscal 2027 on October 16, 2026.
Goldman Sachs kept its Sell rating and set a INR 103.00 target on October 6, 2026.
Gross non-performing assets stood at 2.55 percent on September 30, 2026, down from 3.45 percent a year earlier.

PNB, INE160A01022, Illustration mit AI erstellt.

Punjab National Bank (INE160A01022) reported INR 55.32 billion in standalone net profit for the second quarter of fiscal 2027, up 12.8 percent year over year, according to Fortune India on October 16, 2026. The result arrived alongside a cautious view from Goldman Sachs, which retained its Sell rating and set a INR 103.00 12-month target on October 6, 2026, as reported by India IPO.

Profit growth met a funding test

Net interest income rose 10.8 percent year over year to INR 116.01 billion in the September 2026 quarter, while operating profit increased 4.2 percent to INR 75.32 billion, according to NDTV Profit. The contrast matters: core interest income grew faster than operating profit, leaving credit quality and funding costs central to the next earnings discussion.

What changed in asset quality?

Gross non-performing assets fell to 2.55 percent of gross advances on September 30, 2026, from 3.45 percent a year earlier, while net non-performing assets declined to 0.25 percent from 0.36 percent. The improvement was partly offset by fresh slippages of INR 22.33 billion in the July-to-September period, up 11.9 percent sequentially, according to CNBC TV18.

Three dates frame the story

On October 6, 2026, Goldman Sachs retained its Sell rating and INR 103.00 target for Punjab National Bank. On October 12, 2026, the bank disclosed that its board would consider results for the quarter and half-year ended September 30, 2026. On October 16, 2026, the bank reported INR 55.32 billion in quarterly net profit and released its results, according to Sharpely.

Funding remains the key question

Global advances grew 14.7 percent year over year to INR 13.41 trillion, while global deposits increased 9.9 percent to INR 17.77 trillion in the September 2026 quarter. The gap helps explain Goldman Sachs' caution: loan growth is expanding faster than deposits, so the quality and cost of funding may carry more weight than the headline profit increase.

Punjab National Bank's listed profile

Punjab National Bank is listed on India's NSE and BSE and operates as a public-sector bank across retail, corporate, agricultural and treasury activities. Its disclosed result for the first half of fiscal 2027 showed credit growth of 14.7 percent, above management's 12.0 percent to 13.0 percent guidance range, while deposit growth of 9.9 percent sat within the 9.0 percent to 10.0 percent range.