Source: Punjab National Bank Annual Report FY 2025-26
Quick Facts / Company Snapshot
| Parameter | Details |
|---|---|
| Entity Name | Punjab National Bank |
| Stock Tickers | NSE: PNB, BSE: 532461 |
| Year of Incorporation | Incorporated in 1895; Nationalized in 1970 |
| Statutory Structure | Body Corporate under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 |
| Headquarters | Plot No. 4, Sector 10, Dwarka, New Delhi – 110075, India |
| Majority Shareholder | President of India / Government of India (70.08% equity holding) |
| Managing Director & CEO | Shri Ashok Chandra |
| Customer Base | Over 18.53 crore customers |
| Domestic Branch Network | 10,324 branches |
| ATM Network | 11,065 ATMs |
| Business Correspondents | 33,314 BC Agents / Bank Mitras |
| Total Workforce | 1,03,184 permanent employees |
Company overview
Punjab National Bank is a premier public sector commercial bank in India, operating as a statutory body corporate under the regulatory purview of the Reserve Bank of India. Established in 1895 and nationalized under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the institution delivers financial services across retail, corporate, agricultural, and international sectors. The Bank acts as an accredited banker to government departments, executing developmental initiatives aligned with national priorities under the Viksit Bharat 2047 mission.
The Bank operates across 28 States and 7 Union Territories through a physical footprint of 10,324 domestic branches, 11,065 automated teller machines, and 33,314 Business Correspondent locations. Digital transaction volume accounts for more than 95% of total transactions, backed by omnichannel internet and mobile banking architectures that host over 350 digital features and integrated generative artificial intelligence systems.
Business segments
The Bank reports its primary operational revenue across four key business segments:
- Corporate / Wholesale Banking: Comprises lending activities to commercial borrowers having fund-based and non-fund-based credit exposure of ₹7.50 crore and above, accounting for 38.20% of entity turnover.
- Retail Banking: Encompasses credit facilities extended to individual accounts and business constituents with credit exposure below ₹7.50 crore, contributing 29.73% of turnover.
- Treasury Operations: Includes the complete domestic and overseas investment portfolio, foreign exchange operations, trading in derivatives, money market placements, and interest/dividend yields, accounting for 29.40% of turnover.
- Other Banking Operations: Covers residual banking operations not classified within wholesale, retail, or treasury classifications, generating 2.67% of entity turnover.
History and evolution
Punjab National Bank was founded in
1895. In 1970, the Bank was nationalized under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, formalizing its role in sovereign financial mobilization and social banking. The Bank conducted its Initial Public Offering in 2002, listing its equity shares on the National Stock Exchange of India and the BSE Limited, followed by a Follow-on Public Offering in 2005.
A transformative organizational milestone occurred on April 1, 2020, through the amalgamation of erstwhile Oriental Bank of Commerce and United Bank of India into Punjab National Bank, significantly expanding the Bank’s branch reach, capital base, and geographical market share. In August 2025, the Bank established a dedicated Start-Up Branch at Bhikaji Cama Place, New Delhi, to support early-stage ventures under the national Startup India initiative.
Products and services
The Bank provides personal, commercial, agricultural, and specialized credit solutions:
- Retail Liabilities & Wealth: PNB Kisan Savings Account Scheme, Smart GIG Savings Account, customized salary accounts for defence, railway, and government personnel, fixed deposits, recurring deposits, and demat/trading integrated accounts.
- Retail Credit: Housing loans, PNB Yuva Ghar, Digi Saarthi two-wheeler loans, Tractor Xpress, PNB Yuva Vahan, education loans under PM Vidyalaxmi and Jharkhand Guruji Student Credit Card Scheme, Digi Surya Ghar rooftop solar loans, and instant loans against securities.
- MSME & Corporate Credit: Digi MSME PRIME, GST Express, e-GST Express, PNB Growth Plus Scheme, PNB Sampatti, term loans, working capital demand loans, letters of credit, bank guarantees, and invoice discounting via TReDS platforms.
- Agriculture & Rural Credit: Digi Dairy Kisan Credit Card (KCC), KCC renewal and drawing power enhancement up to ₹10.00 lakh, warehouse receipt financing, and credit linkage for Self-Help Groups under the Lakhpati Didi initiative.
- Transaction Banking: Cash Management Services (CMS), Financial Supply Chain Management (FSCM), Multi-Currency World Travel Cards across 12 currencies, Indo-Nepal Remittance Scheme, and utility collection mandates.
- Digital Channels: PNB ONE mobile application, PNB ONE Biz for corporate entities, WhatsApp banking with over 90 live services, and AI chatbots PIHU (for customers) and RAHEE (for staff).
Brand portfolio
The Bank markets its tailored financial products, cards, and platforms under dedicated brand identities:
- PNB Luxura: Premium metal credit card tailored for high-net-worth customers, entrepreneurs, and senior executives.
- PNB ANTAH DRISHTI: Braille-embossed debit card tailored for visually impaired customers.
- PNB ONE & PNB ONE Biz: Flagship mobile banking platforms serving retail and corporate client segments.
- PIHU & RAHEE: Proprietary generative AI-driven digital assistants deployed across customer portals and internal employee platforms.
- PNB PRISM: Centralized Portfolio & Relationship Intelligence for Strategic Marketing analytics portal.
- SAMARTH: Digital portal managing stressed asset tracking, agency onboarding, and One-Time Settlement workflows.
- PNB AAGMAN & PNB UDBHAV: Internal Human Capital applications facilitating geofenced attendance capture and post-maternity re-onboarding.
Geographical presence
The Bank operates across diverse administrative and demographic clusters:
- Domestic Branch Distribution: Totaling 10,324 branches, comprising 38% Rural, 25% Semi-Urban, 20% Urban, and 17% Metropolitan locations across 744 districts in India.
- Specialized Centers: 57 Customer Acquisition Centers (CACs), 2 Extra Large Corporate Branches (ELCBs), 13 Large Corporate Branches (LCBs), and 254 monitored Currency Chests.
- International Footprint: Operating across 7 foreign jurisdictions, consisting of 1 full-fledged branch in Dubai (DIFC), 1 International Banking Unit at GIFT City (Gandhinagar, Gujarat), 2 overseas banking subsidiaries (Punjab National Bank International Limited in the United Kingdom and Druk PNB Bank Limited in Bhutan), 1 Joint Venture (Everest Bank Limited in Nepal), and 2 representative offices located in Myanmar and Bangladesh.
Board of directors and leadership team
The governance of the Bank is steered by the Board of Directors constituted under statutory provisions:
- Shri Ashok Chandra: Managing Director & Chief Executive Officer
- Shri M. Paramasivam: Executive Director
- Shri Bibhu Prasad Mahapatra: Executive Director
- Shri D. Surendran: Executive Director
- Shri Amit Kumar Srivastava: Executive Director
- Shri D. Anandan, IAS: Government of India Nominee Director
- Dr. Uma Sankar: Reserve Bank of India Nominee Director
- Shri Ambarish Ojha: Shareholder Director (Independent)
- Smt. Vandana Bhagavatula: Shareholder Director (Independent)
Innovation is our tool, but customer service is our purpose. We are building the future of banking together.
Ashok Chandra, Managing Director & CEO
Parent
Punjab National Bank is a nationalized bank established under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The Government of India represents the sovereign promoter entity, maintaining a 70.08% equity ownership stake held through the President of India as of March 31, 2026.
Future strategy
The Bank has defined clear strategic growth vectors:
- Core RAM Asset Expansion: Scaling high-yielding Retail, Agriculture, and MSME portfolios to drive domestic credit deployment.
- Granular CASA Mobilization: Deepening market share in low-cost Current and Savings Accounts by deploying customized product variants for students, women, gig-economy workers, and agricultural communities.
- Digital Straight-Through Processing: Expanding automated loan journeys to ensure faster credit turnaround, integrating Unified Lending Interface (ULI) architectures and data-driven rule engines.
- Enterprise ESG Integration: Advancing the net-zero roadmap to achieve Scope 1 and Scope 2 operational neutrality by FY 2031 and comprehensive net-zero status across Scope 1, 2, and 3 emissions by 2060.
- Human Capital Re-engineering: Accelerating workforce development under Project UDAAN through capability assessments, specialized leadership programs, and objective performance appraisal models.
Key strengths
The operational resilience of the Bank is supported by verified institutional parameters:
- Extensive Distribution Infrastructure: A nationwide physical network of 10,324 domestic branches, 11,065 ATMs, and 33,314 active Business Correspondents.
- Robust Capital Solvency: Capital-to-Risk (Weighted) Assets Ratio (CRAR) of 17.74% with Common Equity Tier-1 (CET-1) standing at 13.62% as of March 31, 2026.
- High Asset Coverage: Provision Coverage Ratio (including Technical Write-Offs) maintained at 97.14%, with Gross NPA reduced to 2.95% and Net NPA to 0.29%.
- Strong Liquidity Profile: Liquidity Coverage Ratio (LCR) of 140.05% on a standalone basis and Net Stable Funding Ratio (NSFR) of 124.01% on a consolidated basis.
- High Digital Penetration: Sourcing of every third loan sanction through automated digital channels, with digital transactions surpassing 95% of aggregate banking volume.
Key challenges and risks
The Bank operates amidst domestic and macroeconomic headwinds identified across operations:
- Credit-Deposit Growth Divergence: Industry-wide deposit accumulation trailing loan expansion, creating competition for retail liability mobilization and exerting pressure on funding costs.
- Net Interest Margin Compression: Yield fluctuations stemming from policy rate reductions by the central bank, which reprice floating asset books faster than term deposits.
- Geopolitical and Commodity Volatility: West Asian trade disruptions, fluctuating crude oil prices, and foreign portfolio movements exerting pressure on currency levels and supply-chain borrowers.
- Technological and Cyber Risk: Proliferation of sophisticated malware, phishing threats, and social engineering attacks targeting customer channels and third-party API interfaces.
- Climatic and Agricultural Vulnerabilities: Potential weather variations, including El Niño conditions, impacting crop production and the debt-servicing capacity of farming constituents.
Conclusion and strategic outlook
Punjab National Bank closed FY 2025-26 with reinforced balance sheet fundamentals, double-digit expansion across core RAM credit, and asset quality metrics reaching historical multi-year highs. By combining modern digital underwriting infrastructure with an extensive physical delivery apparatus, the institution remains well positioned to drive sovereign financial inclusion and support India’s medium-term economic expansion toward a $7 trillion economy by 2030.
Official Site
Official Corporate Website: https://www.pnb.bank.in
Profit and loss
| Financial Metric (Rs. in Crores) | FY 2025-26 | FY 2024-25 | YoY Growth (%) |
|---|---|---|---|
| Interest Earned | 130,772.09 | 124,009.85 | +5.45% |
| Other Income | 18,691.21 | 16,446.96 | +13.65% |
| Total Income | 149,463.30 | 140,456.81 | +6.41% |
| Interest Expended | 88,069.40 | 80,703.84 | +9.13% |
| Operating Expenses | 31,828.96 | 32,550.46 | -2.22% |
| Provisions and Contingencies | 12,469.17 | 9,762.88 | +27.72% |
| Total Expenditure | 132,367.53 | 123,017.18 | +7.60% |
| Share of Earnings in Associates (Net) | 1,370.93 | 1,112.98 | +23.18% |
| Consolidated Profit Before Minority Interest | 18,466.70 | 18,552.61 | -0.46% |
| Less: Minorities’ Interest | 74.01 | 72.32 | +2.34% |
| Consolidated Net Profit for the Period (Group Share) | 18,392.69 | 18,480.29 | -0.47% |
Balance sheet
| Balance Sheet Item (Rs. in Crores) | As on 31.03.2026 | As on 31.03.2025 | YoY Growth (%) |
|---|---|---|---|
| Paid-up Capital | 2,298.59 | 2,298.59 | 0.00% |
| Reserves and Surplus | 147,673.63 | 130,839.37 | +12.87% |
| Minority Interest | 689.53 | 628.43 | +9.72% |
| Deposits | 1,724,795.42 | 1,577,019.88 | +9.37% |
| Borrowings | 107,558.40 | 105,806.55 | +1.66% |
| Other Liabilities and Provisions | 50,315.38 | 40,950.81 | +22.87% |
| Total Capital and Liabilities | 2,033,330.95 | 1,857,543.63 | +9.46% |
| Cash and Balances with Reserve Bank of India | 60,882.17 | 64,389.22 | -5.45% |
| Balances with Banks and Money at Call and Short Notice | 103,239.81 | 86,370.36 | +19.53% |
| Investments | 523,514.52 | 524,840.31 | -0.25% |
| Advances | 1,237,980.05 | 1,086,273.14 | +13.97% |
| Fixed Assets | 15,625.36 | 13,083.30 | +19.43% |
| Other Assets | 92,089.04 | 82,587.30 | +11.51% |
| Goodwill on Consolidation | 0.00 | 0.00 | N/A |
| Total Assets | 2,033,330.95 | 1,857,543.63 | +9.46% |
Cash flow
| Cash Flow Component (Rs. in Crores) | Year Ended 31.03.2026 | Year Ended 31.03.2025 | YoY Growth (%) |
|---|---|---|---|
| Net Cash from Operating Activities | 25,635.41 | 22,075.28 | +16.13% |
| Net Cash used in Investing Activities | (609.00) | (1,577.63) | -61.40% |
| Net Cash from / (used in) Financing Activities | (11,664.01) | (1,138.26) | +924.72% |
| Net Change in Cash and Cash Equivalents | 13,362.40 | 19,359.39 | -30.98% |
| Cash and Cash Equivalents at Beginning of the Year | 150,759.58 | 131,400.19 | +14.73% |
| Cash and Cash Equivalents at End of the Year | 164,121.98 | 150,759.58 | +8.86% |
Subsidiaries, associates, joint ventures
- PNB Gilts Limited (Subsidiary)
- PNB Investment Services Ltd. (Subsidiary)
- PNB Cards and Services Ltd. (Subsidiary)
- Punjab National Bank (International) Ltd., UK (Subsidiary)
- Druk PNB Bank Ltd., Bhutan (Subsidiary)
- PNB Metlife India Insurance Company Ltd (Associate)
- PNB Housing Finance Limited (Associate)
- Everest Bank Limited, Kathmandu, Nepal (Associate)
- Assam Gramin Bank, Guwahati (Associate)
- Bihar Gramin Bank, Patna (Associate)
- Himachal Pradesh Gramin Bank, Mandi (Associate)
- Punjab Gramin Bank, Kapurthala (Associate)
- Haryana Gramin Bank, Rohtak (Associate)
- Manipur Rural Bank, Imphal (Associate)
- Tripura Gramin Bank, Agartala (Associate)
- West Bengal Gramin Bank, Kolkata (Associate)
- JSC Tengri Bank, Almaty, Kazakhstan (Associate – under liquidation)
Other Investments
- Mutual Funds, Venture Capital Funds, Alternative Investment Funds (AIFs), ARCIL Commercial Papers, and Certificates of Deposit held within investment schedules.
- Strategic minority holdings and shares in unlisted corporate entities as detailed in Schedule 8.
Physical properties
- Head Office Buildings: 4 administrative locations including HO Dwarka, New Delhi and Gurugram facilities.
- Branch and ATM Network: 10,324 domestic branches, 11,065 ATMs, 1,058 other offices, and 2 international branches (Dubai and Gift City, Ahmedabad).
- Training Infrastructure: 12 Farmers Training Centres (FTCs), 78 RSETIs, and 163 Financial Literacy Centres (FLCs).
Investments and capital expenditure
- Capital Expenditure: Total capex incurred during FY 2025-26 stood at approximately ₹1,180 Crores (excluding software procurements).
- Rooftop Solar CAPEX: ₹4.63 Crores allocated towards rooftop solar power installations across 65 bank-owned buildings (representing 0.39% of total capital expenditure).
- Software and Intangibles: Additions to computer software capitalized during the year amounted to ₹396.46 Crores (Standalone).
Shareholding pattern
| Shareholders’ Category | Percentage of Equity Shares Held (Current) | Previous % Stake | Number of Shares / Details |
|---|---|---|---|
| President of India (Central Government) | 70.08% | 70.08% | 805,41,25,685 Equity Shares |
| Banks / Financial Institutions / Insurance Companies | 9.42% | – | Institutional holdings |
| Indian Public / Resident Individuals / HUF | 6.80% | – | Retail investor base |
| FIIs / NRIs / OCBs | 6.59% | – | Foreign portfolio investors |
| Mutual Funds | 6.53% | – | Domestic mutual fund portfolios |
| Domestic Companies / Trusts | 0.57% | – | Corporate holdings |
| Clearing Members | 0.01% | – | Clearing accounts |
| Total | 100.00% | 100.00% | 11,49,29,43,268 Equity Shares |
Frequently Asked Questions
Who is the primary owner and promoter of Punjab National Bank?
The Government of India is the sovereign owner and promoter of Punjab National Bank, holding a 70.08% equity ownership stake through the President of India as of March 31, 2026.
What is the total size of Punjab National Bank’s physical delivery network?
As of March 31, 2026, the Bank operates 10,324 domestic branches, 11,065 automated teller machines (ATMs), and 33,314 Business Correspondent (BC) Agent points across 744 districts in India.
What are the primary operational subsidiaries of Punjab National Bank?
The Bank maintains key domestic subsidiaries including PNB Gilts Limited (74.07% holding), PNB Investment Services Limited (100%), and PNB Cards and Services Limited (100%). Its overseas operating banking subsidiaries include Punjab National Bank (International) Limited in the United Kingdom and Druk PNB Bank Limited in Bhutan.
What net-zero greenhouse gas emission targets has PNB formally established?
Under its ESG and Climate Risk framework, Punjab National Bank has targeted net-zero status for operational Scope 1 and Scope 2 emissions by FY 2031, with a target date of 2060 to achieve comprehensive net-zero emissions across Scope 1, Scope 2, and Scope 3 financed emissions.
