India Ratings affirms Punjab National Bank's debt and issuer ratings

Punjab National Bank (PNB) has received an affirmation of its 'IND AAA/Stable' Long-Term Issuer Rating from India Ratings and Research Pvt. Ltd., effective December 11, 2025. This action also affirmed the bank's Fixed Deposits and Senior Infrastructure Bonds at 'IND AAA/Stable', and Basel III Tier 2 Bonds at 'IND AAA/Stable'. Additionally, Basel III Additional Tier 1 Bonds were affirmed at 'IND AA+/Stable', and Certificates of Deposit at 'IND A1+'.

The rating affirmations reflect PNB's systemic importance, continuous financial support from the Government of India, and improved pre-provisioning operating profitability in FY25-1HFY26. This performance has enabled the bank to maintain its market share in advances and deposits. The bank's common equity tier-1 (CET-1) ratio stood at 12.75% in 2QFY26, up from 12.33% in FY25, with a capital adequacy ratio (CAR) of 17.19%.

PNB reported a profit after tax of INR166.3 bn for FY25, a significant increase from INR82.4 bn in FY24. The bank's gross NPAs and net NPAs declined to 3.45% and 0.36% respectively in 2QFY26, alongside a provision coverage ratio of 90.02%. The liquidity position remains superior, with a short-term asset-liability surplus of 12.1% at 1QFY26 and a liquidity coverage ratio of 132.73%.