Hello everyone, and welcome to Q3 FY26 earnings conference call of Punjab National Bank. Today we have with us the management of the bank, headed by Mr.

Ashok Chandra, MD and CEO, Mr. Paramasivam, Executive Director, Mr.

Bibhu Prasad Mahapatra, Executive Director, Mr. D.

Surendran, Executive Director, and Mr. Amit Kumar Srivastava, Executive Director.

With this introduction, I would like to hand over the call to Mr. Ajay Kumar Singh, General Manager, Strategic Management and Economic Advisory Division, to read out the disclaimer statement, post which MD sir will address the conference.

Thank you, and over to you, sir. Ajay Singh (General Manager, Strategic Management and Economic Advisory Division, Punjab National Bank):

Good afternoon everyone. At the outset, I will read out the disclaimer statement.

This presentation contains certain forward-looking statements, apart from historical information. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statement.

Punjab National Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the present date. Now I request MD sir to make his opening remarks.

Good afternoon, ladies and gentlemen. Welcome to the Q3 analyst meet.

On behalf of the entire PNB team, we wish you all a very happy and prosperous New Year. During Q3, our bank has demonstrated a steady progress across all key metrics of business growth, asset quality, profitability and regulatory compliance.

Our focus has been on sustained business growth of both liability and asset side. Towards this end, we have focused on growth in retail business through customer-centric initiatives like outreach programs and opening of new outlets.

We have opened 82 new branches in this financial year to increase our presence and expecting to open another 100 branches in the next six months. We are also using digital enablers to improve business growth and operational efficiency.

Digital journeys for almost all credit card products have been launched. All credit products have been launched.

Our mobile banking app has been revamped for better customer experience. We are mindful of asset quality and have improved asset quality both through reduction of GNPA and net NPA substantially.

Controlling slippages has been our focus and through analytics-based models, we are focusing on delinquent as well as pre-delinquent assets to reduce slippages. The collection efforts are being made on real-time basis.

Our focus on profitability has resulted in sequential growth of both operating profit and net profit, which is highest till date. Now I will enumerate the segment-wise figures.

First I will touch the business. Global gross business of the bank stood at 28.92 trillion as on December 25, with a year-on-year growth rate of 9.5%.

Within this composition of this global business, global deposits stood at 16.60 trillion, with a yearly growth rate of 8.5%, and global advances stood at 12.31 trillion, with a yearly growth rate of 10.9%. We have sanctioned credit lines of more than 3.12 lakh crore during nine months of this financial year, out of which we have pending disbursement to the tune of 1.02 lakh crore, which are yet to be disbursed.

That will further the overall credit growth of the bank. CD ratio of the bank has increased to 74.2% as on December 25, from 72.6% as on December 24 and 72.3% as on September 25.

We are witnessing sustained growth in our low-cost deposit base and CASA ratio has remained at 37.1% as on December 25. We are focusing on targeted growth in SB individual portfolio of the bank.

Bank opened 38.03 lakh CASA accounts in the revamped schemes, with CASA balances to the tune of 20,650 crore during nine months of this financial year. Our RAM advances portfolio is increasing sustainably and stands at 6.62 trillion, which is around 56.7% of the domestic advances.

The share of RAM advances was 56.3% as on December 2024. Coming to the profitability numbers, the net interest income stood at 10,533 crore for Q3 of this year as against 10,469 crore of Q2 of financial year 2026.

Our domestic NIM percentage is at 2.65 for the Q3 of this year, whereas global NIM percentage stood at 2.52. At the beginning of Q3, we expected that cost of deposits will reduce sharply, whereas yield of advances will remain roughly at the same level as that of Q2.

However, we have not reduced the deposit rates much in this quarter, keeping in view the market dynamics and expectations of the customers. Whereas yield of advances has reduced on account of rate cut in December and 5.3% QOQ growth in global advances, which has resulted in dip of NIM for Q3.

For Q4, we expect our NIM to remain at the same level as that of Q3, despite full impact of December rate cut in Q4. For full financial year, our domestic NIM will remain at about 2.70% and global NIM will close at 2.60%, subject to no further rate cuts in current financial year.

Operating profits of the bank is increasing on sequential basis. Operating profit for the Q3 is 7,481 crore, as against 6,621 crore for Q3 of last year, witnessing a Y-o-Y growth rate of 13%, well above the guidance of 8 to 9%.

Net profit of the bank for Q3 for FY26 stands at 5,100 crore, as against 4,508 crore of Q3 of last year, depicting healthy Y-o-Y growth rate of 13.13%. Efficiency ratios.

Efficiency ratios of the bank are improving consistently. Our return on assets is at the level of 1.06% for Q3 of 26, as against 1.03% for Q3 of last year.

Return on equity stands at 7.80%. Earning per share, not annualized, is rupees 4.44 for Q3 of this year, against 3.92 of Q3 of last year.

Our tangible book value per share as on 31st December is 101.89, which has significantly improved from the level of 82.75 as on 31st December 2024. We are mindful of improving of our cost to income ratio, and the same has remained at 51.91% in Q3 of this year, as against 54.16% in Q3 of last year.

Asset quality. Our asset quality is improving consistently and GNPA has reduced to 3.19% as on 31st December 2025 from 4.09% in December 2024 and 3.45% in September 2025.

Similarly, the net NPA percentage, which was 0.41 in December 24, has reduced to 0.32% in December 25. Our PCR stands at 96.99% as on 31st December 2025, which is well above our guidance of more than 96% for entire financial year.

Total fresh slippages during Q3 of this year was 1,901 crore against 1,955 crore in Q2 of this year. Our guidance for slippages ratio was to remain below 1% in FY 2026, and we are well within our guidance levels, as slippages ratio for the nine months 2026 is 0.56% on annualized basis.

Total recovery stood at 4,090 crore for Q3 of this year against 3,412 crore for Q3 of last year. Our recovery is 2.2x of the slippages, reflecting our commitment towards improving asset quality.

We have made additional floating provisions of 955 crore on prudential basis in Q3, on account of which credit cost is looking elevated at 0.46%. Now total floating provision is 1,775 crore, which will help us in moving towards ECL transition.

This is mindfully we have done to minimize the impact of ECL, which is likely to be implemented from 1st April 2027. I will provide an analysis on underwriting standards, which will provide confidence regarding the asset quality and underwriting standards of the bank.

From 1st July 2020 to 30th December 2025, that is almost five and a half years, we have sanctioned around 13.20 trillion loans, out of which we have disbursed 11.50 trillion loans. The outstanding in these loans is 8.24 trillion as on today, which is close to 67% of our total outstanding loan book.

The NPA in this book is hardly 4,687 crore, which is only 0.41% of the disbursed amount under fresh underwriting. I think this speaks about the underwriting standard of the bank for the last six years.

Capital: our capital adequacy is 16.77% as on 31st December 2025 compared to 15.41% as on 31st December 2024, which is 136 basis points above December 2024. Our CET1 capital stands at 12.52% against the regulatory requirement of 8%.

Tier 1 capital stands at 14.13% against the regulatory requirement of 9.5%, and Tier 2 capital stands at 2.64% as at 31st December 2025. Digital initiatives of our bank: Bank is consistently enhancing its digital foundation with a strong emphasis on developing advanced digital capabilities.

Efforts are particularly concentrated in the areas of artificial intelligence, machine learning, and analytics-driven business generation. These initiatives have started to deliver significant results, contributing meaningfully to the bank's overall growth and operational efficiency.

Today we have digital journeys for almost all the credit products in the RAM segment. In Q3 of this year, we launched Digi Saarthi, that is the two-wheeler loan, through the digital channel, Tractor Express, Digi MSME, and e Prime Minister Svanidhi.

These all journeys are through the digital channels. In Q3 of this year, we have sanctioned and disbursed digital loans to the tune of 12,672 crore under RAM segment to 3.12-1.18 lakh customers.

Every third loan is being sanctioned in digital mode in our bank. The share of digital transaction is close to 95% for Q3 of this financial year.

We have launched our revamped mobile banking application PNB 1 2.0 in Q3 with enhanced UI and latest technology stack. The app is applicable, all features available in 14 languages with 350-plus features, and there are more than 2.50 crore activated users on this app.

PNB 1 now supports complete API integration, including API Lite, UPI mandate, and UPI credit line. Number of WhatsApp banking users have grown by 81% from 52.7 lakh as on 31st December 2024 to 95.4 lakh as on December 2025.

KYC updation through WhatsApp banking has also been enabled. There is very good traction in our corporate mobile banking app PNB 1 Business, which serves to more than 2.42 lakh customers with more than 200 features.

We have on-boarded more than 5.96 lakh CBDC customers and 98.42 lakh transactions done through CBDC app till 31st December 2025. We are also in the process of CBDC activation through business correspondent channels.

Going forward, we are launching UPI in our PNB 1 Business application as well as retail and corporate internet banking services will also be revamped. New initiatives: bank appointed Indian women's cricket captain Ms.

Harmanpreet Kaur as its first ever female brand ambassador with the theme Banking on Champions, and we expect good results from this strategic collaboration. Bank launched its first metal credit card PNB Luxura with a target market of HNIs, high-end professionals, and affluent business owners as on 3rd December 2025.

We are witnessing good traction in this credit card and have set a target of more than 10,000 credit card issuance by 31st March 2026. HR initiative: our bank has adopted new-age HR ecosystem driven by Project Udaan.

We are undertaking this project in two parts, namely digital performance management system and capacity building. Under digital performance management system, 16,160 KRAs have been mapped, directly linking individual and team efforts to strategic outcomes and aligning the entire organization with Vision 2030 of the bank.

This will increase the accountability and data-driven decision making in the organization. Under capacity building, we are undertaking numerous steps involving leadership development programs, Gen AI learning chatbot, and comprehensive skill development programs for employees.

By concluding remarks, we are extensively focusing on improving customer service to generate business organically. Average time taken for Grievancees resolution has come down to three days in December 25 from 14 days in April 25, and performance has been recognized by BFS as well.

Customer service has been one of the focus areas for the bank. PNB remains committed to reinforce its core business fundamentals.

The bank is focused on increasing the CASA share within its total deposits as well as enhancing the RAM portfolio in total advances. These strategic priorities are designed to collectively support improvements in overall profitability and efficiency ratios.

The bank continues to prioritize containment of slippages and robust recovery efforts to improve the asset quality. Ongoing digital and human resources transformation initiatives are paving the way for long-term growth and operational excellence.

Going forward, the bank aims to further enhance its market share across all the segments. Thank you very much, and I am open for the questions or any clarification or clarity is required related to the performance results of our bank.

Along with me, my Executive Directors and entire top management team is here with me now. Thank you.

Good afternoon. I have a couple of questions.

My first question is on the provision. Last quarter we had discussed that there’s going to be a write-back of provision from an account which other banks like Union had already written back in the second quarter, and we were supposed to take that write-back on provision in the third quarter.

That was roughly around 7 to 9 billion. Why wasn’t the floating provision offset against that?

I think that if we had that much of a write-back and our floating provisions were also around 9 billion only, then there shouldn’t have been an increase in provisions, right? That was my question.

That was my first question, and I’ll let you know the others.

Yes. Good afternoon, madam.

I will give you the clarity that provision we have not yet released. That account, you are right, that account became a standard in the last quarter, but the provision which we are holding in the standard account, still we are holding it.

We have not yet released that amount. This 955 crore floating provision which we have made, it is from the other than whatever the profitability was available in our system.

From that, we have made this floating provision, keeping in mind that ECL implementation is going to happen from 1st April 2027. The pressure will not be there in our balance sheet going forward.

Since we had a good profitability, good operating profit and net profit, we have made this provision. If we would not have made this provision, our profit would have been more than 6,000 crore.

Sir. Any specific reason on why the provision was not released?

You don’t want to release it, or any other reason? Because other banks seem to have released this.

No. We do not want to release.

It is not like that. We are still looking for that, and maybe we’ll take a call at the right time, maybe in the Q4 we may take the call.

That provision is still we are holding it, more than around 900 crore. That is there in the standard.

Sir, my other question was on ECL. Most PSU banks seem to suggest 40 to 50 basis points credit cost run rate under ECL.

What would that be for PNB? Because last quarter and last two last quarter were very negligible, I’m talking about second and first quarters now.

What would be the run rate of provision, say once the ECL is implemented, how much of credit cost per quarter or per year do you expect? Would it be 40 to 50 basis points?

Would it be lower? Also if you could spell out the SME1 and SME2 below 5 crore.

Yes. I will give you some clarity about the ECL calculation and where we are now.

I think last time also we had given because it is a rough calculation, bank has done it. We are putting the digital framework in place, then we will have the exact calculation.

Rough calculation which we have done, it comes to around 9 to 10,000 crore. That is the total capital that is required for the full implementation to happen in the five years’ time.

Now if you see, out of this 1,775 crore, already we have made the provision. This quarter we have made 955 crore provision, and last quarter also we have made some provision.

Floating provision against this 9 to 10,000 ECL requirement which is going to have, we have already 1,775 crore provision now. That is already in place.

Bank is not going to have any impact, major impact on account of ECL implementation. Because 5,000 crore and above every quarter profit is going to happen.

With that thing in place, I think every quarter we will have something where we will keep the extra for the floating provision, and that when the ECL gets implemented, we will adjust this floating provision against that ECL as per the RBI guidelines. Absolutely I want to clarify to you as well as to all the analysts who are present here that this quarter once you see the elevated provision of 341 crore, it is on account of consensus decision of the bank to make additional provision of 955 crore.

Otherwise our actual provision which is required is only 386 crore on account of the slippages which has happened and to keep 97% of the PCR. Otherwise other than that, absolutely there is no pressure in the bank as far as the provisioning requirement is concerned.

Sir, my question was a little different. I know that you are well prepared for the transition impact of ECL.

You have stated that perhaps in your last quarter as well, but I’m talking about the run rate impact. Say ECL were to be implemented this quarter, what would be the actual credit cost?

Because under ECL you have to provide for stage 2, you have to provide for stage 1, and of course you have to provide for stage 3 as well. On a run rate basis, say ECL is already implemented, what would be the credit cost every quarter?

Will it be 40 basis points? Will it be 50 basis points?

What will it be?

No, it will not be. I will tell you, stage 1, we are already providing 0.40.

Absolutely there is not going to be impact on stage 1. Because standard asset, already we are doing that.

Stage 3 also, having 97% provision coverage ratio, we are not going to have any impact on the stage 3 provision also. Stage 2 only, because of the elevated provision is there, 5%, there only the impact is going to come, and that calculation roughly as of today is around 10,000 crore.

Now if I distribute this 10,000 crore for five years, five years multiply by four quarters, it comes to 20 quarters. So 20 quarters means every quarter if I am able to do 500 crore, I am able to meet that requirement, and that 500 crore every quarter, hardly it comes to around 10 to 15 basis points.

Like in this quarter, 955 crore we have kept, and with that the credit cost with 386 crore, it comes to only 0.46%. With this implementation, every quarter around 500 crore will be required, with that hardly around 15 basis point credit cost will increase.

Sir. There will be an increase of 15, maybe 15 to 20.

What will be the SME1 and SME2 below 5 crore?

I will give you the entire portfolio, SME zero, one, two, all put together. The ratio in the bank is 4.76%.

4.76% for all SME... All zero rupees to the higher amount, all put together.

So 4.8% of loans?

4.61%. 4.61%.

That is the total SME of the bank.

Sir. Got it.

Thank you very much and all the best.

Hi. Good afternoon, sir, and thanks for the opportunity.

Sir, I have a few questions. First is, sir, this floating provisions of 1,750 crore, have they been netted off to arrive at net NPA, or they are not part of specific PCR?

No. They are not part of net NPA.

That is good. Secondly, sir, if you have the number separate for zero, one, two, that will help because maybe you need not provide for SMA zero as per the draft regulation, but one, two, on a continuous basis bank may have to provide.

If you have that number separately for zero, one and two, for SMA loans of the bank.

SMA zero, what is the percentage? You can tell, madam.

Our CGM in charge, the CRM risk management is there, she will tell you.

She will be

Loud. 1.6.

1.6.

Sir, absolute number is also okay.

No, I'll give you the percentage. Sure.

1.6. Yeah.

Keep that table. The SMA zero is 34,176.

SMA one, 1949,439. SMA two, 13,122.

Sure, sir. Sir, would you have also done a calculation that let us say if in this quarter itself you were to apply for ECL norms, what would be the credit cost?

That is what I think Mahrukh was also trying to understand, that assuming you are in ECL, what could have been the provision in this quarter, let us say?

See, if five years implementation period is there as per the RBI guidelines, it means I have 20 quarters to implement it, and a rough calculation which we have done, it comes to around 10,000 crore. It means 500 crore every quarter we need to provide for ECL implementation for five years.

With 500 crore, hardly it comes to around 15 basis points, 0.15. Right.

Sure.

Since 10,000 crore is required, out of that 1,775 I have already provided. Since we had a cushion in this quarter and we had good profitability, we took a conscious decision that let us make the provision floating, and as per the RBI guidelines this floating provision will get adjusted against the ECL when it gets implemented.

It is for strengthening of our balance sheet this provision has been made this year, this quarter.

No, this is all welcome, sir. I understand this is contingent and floating in nature, for the contingency only.

Okay. Second question is, sir, a few banks have sounded some RBI compliance on agri crop loan PSL requirement, that, the criteria for maybe PSL tagging has been tightened.

Has that exercise been over for our bank, and what is the status here?

No. We don't have any such challenge, and the bank which you are quoting, their RBI supervisory review had happened.

In our bank also, every bank RBI supervisory review happens every year, and we are totally compliant in that. We don't have any such challenge.

Sure. Lastly, sir, this quarter is the interest on—we had a very good TWO, but still the interest income that has gone to NII from TWO recovery is more or less similar, right?

400-odd crores. That has not changed.

That has no material impact, right? Despite having a large TWO recovery.

No. Almost around 400 to 500 crore RAI recovery every quarter happens.

That has remained same. Because whatever recovery we do in TWO, generally it goes in our operating profit straight away, not through the interest route.

Sure. Sir, one thing that I observed was interest on investment, right?

That has declined. Is there any one-off, or, you think that could be the new normal basis the interest rate environment, or is there any reason for a slightly higher decline in that line item?

No. It is not.

It is in line with the market scenario. Nothing else.

You should not read anything else other than this.

Sure. Thank you.

Thanks a lot, sir. I'll come back in the queue.

Thanks and all the very best. Thank you.

Thanks for taking the question. Firstly on margins, again, I think there would have been some impact of repo repricing, and we have 50% EBLR portfolio.

That would have taken the knock on margins. In terms of deposit repricing, when should we actually start to see the deposit repricing benefit?

If we look at it, it's hardly, say, 25-odd basis points, which we have got over last three quarters. When does that happen?

In fact, we revised our margin guidance also down. Was it purely the repo rate cut which is leading to the revision in the guidance, or is there any other element in terms of lower benefit on deposits coming through?

No, absolutely. Only because of the 125 basis point rate cut, and second thing related with this is the deposit rate pricing.

Because 125 basis point rate cut has happened in the credit side, and that you are very rightly mentioned that more than 50% we have the repricing.

since 50% and above the repo-linked rates were there, so that we have passed on immediately. In fact, in our bank immediately on the next working day we passed on those benefits.

To that extent we have not gone for the deposit repricing. In fact, we are very mindful of the deposits, the scenarios, dynamic situation, and keeping the customers' interest also, because we have 18 crore-plus customers, and they have a lot of faith in our system.

We thought that let us continue that deposit rate. That is the reason in Q3 we have not cut much the deposit rate.

We have kept it intact, and that is the reason that has impacted our overall NIMs. Going forward, what we are seeing, that we had one special scheme where we had mobilized more than 2,48,000 crore.

That deposit was for 440 days, and that scheme was there till March 2025. Now from 1st April 2025 this scheme was withdrawn.

Now those deposits are getting repriced. 70% repricing has already happened by December, and 21% is going to be repriced in the fourth quarter, this quarter, and 9% still it will get repriced in the first two months of first quarter of 26-27.

The entire deposit repricing will happen by somewhere in the month of May 15. By that time this entire thing which is there at 7.25, it will at least 60 to 70 basis point, the reduction will happen when the repricing happens.

You all know that, see, all these impacts will be visible after six, seven months now. I am expecting that for 2027, at least the impact of these things will be visible in the system.

Sure, got that. Secondly, with respect to growth, still in terms of the guidance, we are at 11 to 12-odd percent, while maybe year-to-date growth itself is say, 10.5-11.

Would we be seeing some kind of improvement from the corporate side, or we should be able to comfortably?

Credit growth, I am expecting that as of now, nine months credit growth is 10.9 percent. I am confident that this 11 to 12 percent guidance which we have given by March also, we will be crossing this guidance.

Deposit growth guidance also 9 to 10 percent we have given, and as of now we are at 8.5 percent. Hundred percent we are going to touch around 9 percent of the deposit growth.

There has been good momentum in the system, and we are encashing those opportunities. At the same time, there are some low-yielding advances are there in the corporate book.

That also we are selling it and we are replacing it with high-yielding advances. Otherwise, our corporate loan book would have grown more than 11 to 12 percent.

We are also ensuring that all those low-yielding advances, slowly we should replace it with high-yielding advances, and that is the reason corporate loan book is still at around 9.5

percent. This would continue even in the next quarter?

That’s the reason, even after 11-odd percent, we are saying that 11 to 12 is the only guidance and not revising it to 13-14-odd percent or so?

This quarter also we are going to shed some deposits, corporate loan book, and that is the reason we are still holding that 11 to 12 percent growth will be there overall credit growth.

Got it. Perfect.

Yeah. Thank you.

Thanks a lot.

Hi, sir. Thanks for the opportunity, and congrats on good quarter.

Sir, I just wanted to understand what was your average LCR for this quarter?

125? Yeah, 127.

At that number? It was more than 125.

130. It is 130.

130 percent. Okay.

And

sir, there is a change in guidelines of LCR from 1st April 2026. How much of that impact will have?

I think around 5.25 percent impact will be there, yes.

Negative impact?

Positive impact. Yeah.

Sir. Sir, this quarter we had a good treasury gain.

Does it include the state sale of Karnataka?

Yes. That includes that.

How much was it?

Net gain was around 700 crore. 912 crore was there.

That is actual impact of that sale.

Oh wow. The balance 400 crore would be the normal treasury gains?

Yes. Sir, I just wanted to understand,

one more point, there has been a hit of 400 crore MTM also.

We have done very good on treasury gains over the past two years, and that has also been because of the yields. Now incrementally the yields are kind of steady, rising.

How should one understand treasury gains in FY27? Will it be 2,000 crore, or no, that is not how we think?

We have clocked 4,000 crore over the past few years.

I think you are talking about the next year. Let us wait for another...

It is a very, very dynamic situation now. One more MTM will come in between, and then we will see how the impact comes.

Anyway, I think March we are also coming out with the strategy paper for 26-27, and definitely somewhere in April we will discuss about the 26-27.

Understood, sir. Sir, why not increase our loan book guidance to 15 percent when the opportunity is so good and LDR is at only 74-73 percent?

See, if you see MSME, we are growing at 19 percent. Retail, excluding IVPC, we are growing at more than 18 percent.

IVPC, every quarter we are reducing it. December 24 to December 25, the net reduction in the IVPC book is more than 30,000 crore.

What is happening, we are growing the credit scenario, but at the same time there are some low-yielding advances are there, including this IVPC. We want to come out of those things so that going forward we will have the good quality, high-yielding advances, and that will be sustainable for a longer period.

That is the reason we are not revising this 11 to 12 percent. Otherwise sector-wise, if you see, we are growing at more than 17-18

percent. Assuming in FY27 deposit growth is 9-10 percent, would you grow at 15 percent plus?

I will give you the number once the strategy paper comes out, board strategy meets happens.

I am

giving you the thought process. I am telling you my thought process.

Because one or two quarters more I will take in the 26-27 also to reduce my low-yielding corporate loan book. Afterwards definitely bank will grow at more than 12 to 13 percent.

Understood, sir. Sir, this last question, sir, any guidance on your recovery from written off for 4Q and next year?

For Q4 also we are likely to grow more than 4,000 crore of total recovery, and around 1,500 to 2,600 crore EW recovery we are expecting, and that is the thing which we have targeted.

Okay. Sir, FY27, would it be broadly similar to FY26, or lower?

It will be, I think let us wait for that 26-27 number. Definitely I think last year also if you see around 12 to 13,000 crore was there.

Definitely between 13 to 15,000 crore we will be aiming for another two years.

Understood, sir. Thank you so much, sir, and best of luck.

Hello, good afternoon team. Am I audible?

Good afternoon.

Yeah. My question is on the treasury income that we have around 1,300 crores of treasury income, including the 900 crore of the Canara HSBC gain.

Normalized treasury income is only 400 crore approx. Am I is my thinking right?

Yes, you are absolutely right. See what happened, there is an M2M loss was there for one account, 400 crore.

In the last quarter there was a gain of MTM was there of around 350 crore in the same account. There is a fluctuation is there in that.

Sometimes loss happens, sometimes profit happens. Treasury gain will be in the line of around 1,300 to 1,500 crore.

Okay. My last question is on the new labor code.

How much impact we have, one-time impact we have taken here?

No impact on implementation of labor code. Bank was already implementing all those clauses which the labor code has provided, and absolutely nil impact.

Okay. Fee-based income, I just want to ask that even after a good growth, why our fee-based income is almost in a similar line of Q2?

Will it increase in Q4 and next year, or will be in the same range?

Generally what happens in the fee-based income, there are some components like processing charges, the ATM charges, the locker rent, all these things we collect in the very first quarter of every financial year. First quarter there will be very good collection, and afterwards all the renewals happens or the new proposal which we source, to that extent only the fee-based income will increase.

It will be muted in the Q2, Q3, Q4, but first quarter of every year, substantially it will be high. We have come up with three new streams, and I am very hopeful that going forward there will be a lot of traction will happen in the fee-based income.

One is a supply chain vertical which we have created in this financial year, and there is a 4,500 crore sanction book under the supply chain. there vendor financing, dealer financing, this new vertical we have created.

Second vertical which we have created is the cash management services, which is totally it is a fee-based income only. This vertical also second quarter we had created, and we are expecting good revenue should happen from this stream also in the 26-27 financial year.

Third vertical which we have created, headed by a general manager, is credit card vertical now. We have also launched for the first time metal credit card, very high net worth individuals, the PNB Luxora, and there also we are to build up a good number now.

We already have a credit card in our bank, and that is owned by our bank itself, and more than seven lakh credit cards are there in that scheme. This is a high-end credit card which we have launched, PNB Luxora.

Through all those things I want to see that on a sustainable basis, on a regular basis there has to be improvement in the fee-based income in the 26-27 financial year.

Okay. Thank you.

That's from my side, and all the best for the future.

Thank you.

Thank you for the opportunity. Sir, what explains sharp fall in your investment yield, and how do you see margins on a quarter-on-quarter basis?

I know that for the full year basically you have downgraded your margin guidance, but on a quarter-on-quarter basis, how should we look the margins hereon? If you can explain why the investment yield has fallen on a quarter-on-quarter basis?

The yield, you are all knowing that it is totally market-driven now, and we are all seeing that as of today also yield is quite tough now, very hard now. It all depends upon the market scenarios and what opportunities that comes in that particular segment.

I am not seeing that sharp decline is happening. It was 6.87 December 24, and today it is 6.76 percent now.

Decline is hardly around 11 basis point Y-o-Y now.

Sir, if you look at from where it has come down, it was about 6.9 or so, and from December

it was 6.9. See, when the average yield is coming down, definitely it will have the impact here also.

There is no concern as far as the revenues are concerned and the total contribution from the treasury book. I think the contribution is intact, 1,300 to 2,700 crore, every quarter we are getting it.

This quarter also we got 1,300 crore, and going forward also we have a visibility that we are going to have a good gain overall credit, the total contribution from the treasury book.

Sir, is there any labor code impact that you have taken during the quarter, or is it very negligible for the public sector banks because you do not have any contractual labor?

Correct. We don't have any impact because of the same reason what you have mentioned.

We are already being guided by the salary revision of IBA, and we are already paying to whatever that has been mentioned in the labor code. More than that we are doing it.

Absolutely there is no impact.

Sir, during the current quarter you have had a very strong recovery from written-off pool. Is there any large specific account that you can talk about, which has been recovered, and do you expect similar kind of a trend in fourth quarter as well?

Out of this 4,100 crore recovery, there is one account where we got more than 700 crore. Other than that all was below 100 crore recovery.

All small-small accounts were there. This quarter we are also expecting around 400 to 500 crore one single account, and all other accounts are below 100 crore, and that momentum is there in this particular quarter also.

We have already set the target for this quarter that more than 4,000 crore of recovery overall and 1,500 crore TWO recovery should happen in this quarter also.

That's very helpful. Thanks a lot.

Thank you.

Hi, sir. Good afternoon.

A few clarifications firstly from my side. Can you explain why the tax rate was a bit lower at 19 percent?

That is one. Secondly, this 9,000 to 10,000 crore ECL impact which you quoted, is that the provision shortfall, or is that the post-tax impact on capital?

Thirdly, your progress on PSL compliance seems to be quite good over the past few quarters. Do you expect to purchase any PSL certificates in the next year?

Yeah. I will touch that part, PSLC.

I think this year we have made good progress under that PSLC, and I am expecting that at least around 50 to 60 basis point cut should be happening in the next year. More than that we are already targeting in that direction now.

We are already compliant as far as the RBI regulatory guidelines are concerned. We don't have any issues related with the PSLC compliant.

Another question was related with tax rate and the TCL. TCL, yeah.

ECLC, there are three stages are there, all of you know. Stage one, 0.40 percent provisions are required, and that we are doing.

To interrupt you, sir. I understand the calculation you have mentioned.

I'm just asking if this 10,000 crore, is that the pre-tax impact or the post-tax impact? That's all.

Post-tax impact.

Understood. Okay.

The tax rate also.

Yeah. Ajay Singh (General Manager, Strategic Management and Economic Advisory Division, Punjab National Bank):

Actually, sir, we have made a tax provision of 130 crores this time, and there was a reversal of provisions to the extent of 506 crores in the tax provisions because when the actual computations of the tax liability, it come up to be less, which we envisaged during the 31st March 2025. There was a reversal of 506 crores.

Net changes to about 130, which may be giving you a percentage of 19 percent.

Understood. One more question from my side on the margin front.

You had guided last quarter that it would improve by 5 basis points QoQ. I understand a couple of things would have changed.

One is the repo rate cut, which I assume would have had an impact of about 5, 6, 7 basis points. The second one which you mentioned was on TD rates that you have not cut in this quarter, but I assume that would have a negligible impact because TD rates take time to pass through.

What exactly changed as per your earlier expectation?

No. It was one is that the 25 basis point rate cut has happened, definitely that has put some impact, and the repricing which we were expecting that will happen, and that too with the revised rate, we were expecting that we will cut some rate in the month of October and November.

We have not done that. Now that exercise we have done on the 1st of January.

We have cut some deposit rate in the different bucket now, around 22-30 basis points. If we would have cut that, definitely some impact would have come.

Say 100-200 crore will still impact the NIM now, 3 to 4 basis points. That is the impact it brings in the overall calculation.

Overall, if you see, our total NII is greater than the September quarter. Once we get final number, I think in the NIM calculation, it has impacted.

I am expecting that this repricing is going to be fully complete by end of April, somewhere 15th of May. Entire 2,48,000 which we had mobilized at very high rate last year, the retail term deposits, 7.25% and 7.75%, I think that is going to be repriced with the revised rate.

I think another three, four months it will take to bring down the NIM. I am expecting that from the Q1 and Q2 onwards, definitely the NIM will improve and we will be back to the original scenario.

Understood, sir. Thank you very much.

Thank you.

Hello?

Sir, my question first will be, sir, what will be your net guidance, net for net NPAs and net GNPAs now for quarter four and for FY26?

Gross NPA, it will be below 3%, which we have already given the guidance in the beginning of this financial year. We will be below 3%.

Net NPA below 0.35%. We are already at 0.32%.

Definitely this guidance which we have given we are going to do and we are going to achieve that.

Any revision in net NPAs guidance?

No. I think we are trying to bring it below 0.30.

We'll try to do it. Guidance which we have given, we are already, we have done that.

Somehow we'll try that. We'll try to bring it below 0.30.

Sir. My bigger question, bigger picture is that, sir, PNB delivers numbers like you say one quarter good, other quarter, sir, the momentum is not keeping.

This quarter you have done a provision, last quarter slippages elevated happened. Sir, how an investor which is invested in PNB for years, how it would feel safe after one or two quarters he feels, okay, bank is delivering good numbers, another quarter slippages happens of any reason.

I am not saying you will happening of any reason. This quarter provision happens.

Sir, look at other banks like State Bank, Bank of Baroda. They are delivering a constant set of numbers.

Investor feels safe in these banks, sir. Can you please assure your investors that is invested in you and invested a lot of their faith in your bank?

Sir, you should have confidence. I will tell you, you should have full confidence in the performance.

You see none of the parameters, the guidance which we have given in the beginning of the financial year, despite the strain in the system, despite 125 basis point cut in the system, we have not revised any of my guidance. You see the guidance which was given in the month of April.

We gave the guidance that gross NPA below 3%, net NPA 0.35%, credit cost which you are talking about in this particular quarter, credit cost our guidance was below 0.5% in the entire year. In this particular quarter we are at 0.46%.

That also deliberately we have kept it because of the ECL implementation which is going to happen from 1st April 2027. Now we had the profitability in this particular quarter and it was the right time for us to keep the 955 crore set aside and that we have kept it as a floating provision as per the RBI guidelines.

Now this will help us in adjusting our ECL implementation which is going to happen from 1st April 2027. Whatever guidance, you see the guidance on return on assets.

We have given the guidance of above 1%. We are at 1.06%.

September we are 1.05%. Slippages ratio, we gave the guidance of below 1%.

We are at 0.67% in this particular quarter, and nine months if you see, we are below 0.56%. Credit growth we gave a guidance of 11 to 12%.

We are at 10.9%. All the parameters, we are maintaining the guidance, operating profit, we gave a guidance for 8 to 9%.

We are at 13%. That is the growth which we are showing you.

I think that should, you should see the overall guidance which the bank has given and whether we are meeting those guidance or not. This is always better to see that whatever the future that is going to happen, prepare ourselves for the future situation.

When the ECL got implemented, the announcement happened somewhere I think Q1 or Q2. I think this is the right time.

If we have the cushion, why to get a hit when the actual implementation happens? I think you should see broader things and not one Q1 or Q2.

You should see the consistency in our performance. You tell me in any of the parameter except the NIM, any parameter, there has been a decrease or downward reduction anywhere in any of the parameter.

We are very mindful that for the investor there has to be consistency, and each and every quarter there has to be improvement in every ratio. We are committed to that and we are doing it.

This quarter also you see, except NIM, all parameters there has been improvement. Every parameter improvement is there.

Thank you, sir. Thank you for giving me a chance to ask a question again.

My question was on investments. Could it be that the investment yield has declined because of treasury profits booked over the last few quarters?

Could that be a reason?

That is also one of the reasons. Second reason is in the Q2 there was one-time income of 60 crore was there from one company.

That was booked in that particular quarter. There was another one dividend income was there to the extent of 130 crore, which was booked in the Q2, which is not— But

that is income on investments?

Yeah. Yes, income on investments.

These are all income on investments. Otherwise there is a consistency there in the treasury income also, and 1,300 to 1,500 crore income will be there from this particular treasury.

For answer, how much of HTM would we have sold in the first nine months?

After 5% cushion, we have just used 1.5%. We have not sold

HTM.

HTM I am talking. Yes, we have utilized only 1.5%.

Sir. Thank you so much.

Thank you.

Thank you, madam.

Thank you very much for all the analysts who are exposing faith in our performance. We are committed to the consistent performance and quarter-to-quarter improvement in all the parameters.

In this quarter also, if you see in all the parameters, including the operating profit, net profit, all the efficiency ratios, I think we have shown the consistency, and we are committed to do that. We value your relationship with our bank, and you being one of the stakeholders in our organization, definitely, I think we are committed to provide good value to you in the long run, and we will do whatever best is possible to do that.

Thank you very much.