Punjab National Bank bonds reaffirmed AA+/stable by Brickwork Ratings

Brickwork Ratings has reaffirmed the long-term ratings for Punjab National Bank's (PNB) outstanding Basel III Additional Tier I Bonds of ₹495.00 crores and proposed Additional Tier I Bonds of ₹2,505.00 crores at BWR AA+/Stable. This rating action, dated December 15, 2025, reflects PNB's consistent improvements in asset quality and comfortable capitalization levels.

The reaffirmation is supported by the government of India's majority ownership (70.08% as of September 30, 2025) and continued support, alongside PNB's established market presence as the third-largest public sector bank in India. The bank's total assets stood at ₹18.76 lakh crores as of September 30, 2025, with global business reaching ₹27.87 lakh crores, showing an 11.11% year-on-year growth.

PNB's gross NPAs significantly declined to ₹40,343 crore (3.45% of total advances) by September 30, 2025, from ₹47,582 crore (4.48%) a year prior. Net NPAs also improved to ₹4,026 crore (0.36%). The bank's total CRAR was 17.19%, with a Tier I ratio of 14.41% as of September 30, 2025, comfortably above regulatory minimums.