Punjab National Bank (PNB) shares surged as much as 7.7% to an intraday high of ₹125.22 on the National Stock Exchange on Monday, 19 October, after the public‑sector lender reported a profit after tax that exceeded analysts’ expectations for the quarter. The bank posted a 12.8% year‑on‑year rise in its standalone net profit to ₹5,532 crore in Q2 FY27, compared with ₹4,904 crore in the same period a year earlier. Net interest income grew 10.8% YoY to ₹11,601 crore, up from ₹10,469 crore in Q2 FY26.

PNB’s net interest margin rose by eight basis points sequentially, moving from 2.5% in the previous quarter to 2.58% in the quarter ended 20 September 2026. Management indicated that the margin could improve further as loan yields strengthen and deposit costs remain low. CLSA analysts noted that the bank’s asset quality stayed stable, with a gross slippage ratio of 0.8%. The bank’s loan growth accelerated to 16% YoY, while deposit growth held steady at 10% YoY, supporting the margin expansion.

CITI analysts highlighted that PNB’s NII growth of 10.8% YoY and 7.4% quarter‑on‑quarter surpassed the firm’s estimates, driven by an eight‑basis‑point rise in NIM to 2.58%. They added that runoff of wholesale deposits via FCNR inflows trimmed the cost of deposits by five basis points, while continued paring of retail IBPC and low‑yielding corporate exposure lifted yields by eight basis points. Credit costs were near zero, as releases in standard asset provisioning offset NPAs and floating‑provision buffers, keeping the bank’s return on assets above 1%.

Global advances rose 14.7% YoY and 5.3% QoQ, outpacing the FY27 guided band of 12% to 13%. The increase was aided by FCNR‑funded overseas exposure, which accounts for 1.5% of the book. Management reaffirmed its guidance of 12–13% loan growth, NIMs of 2.6–2.7%, sub‑40bps credit costs, and a return on assets above 1%. These figures align with the bank’s recent performance, where loan growth accelerated and deposit growth remained stable, underpinning margin improvement.

At 2:59 PM, the stock traded 4.76% higher at ₹121.84 per equity share. Over the past week, the scrip has risen 5%, and over the month, 4%. Year‑to‑date, it has fallen 2%. The share hit a 52‑week high of ₹135.15 on 19 January 2026 and a year’s low of ₹98.50 on 18 May 2026. As of 19 October 2026, Punjab National Bank’s market capitalisation stood at ₹1.40 lakh crore on the NSE.