Synopsis:
Each PNB and BOB have introduced their monetary outcomes for the primary quarter of this monetary yr.
India’s second and third largest PSU banks by market capitalization are in focus after they reported their outcomes for Q1 FY26. On this article, we are going to dive into the main points of how each these banks carried out and which might be a proper addition to your portfolio.
Monetary Highlights
Punjab Nationwide Financial institution (PNB) reported a internet curiosity earnings of Rs 10,578 crores in Q1 FY26, up by 1 p.c from its Q1 FY25 earnings of Rs 10,476 crores. Nevertheless, on a QoQ foundation, it declined by 1.7 p.c from Rs 10,757 crore.
PNB reported a internet revenue of Rs 1,675 crores in Q1 FY26, down by 48.5 p.c from its Q1 FY25 revenue of Rs 3,252 crores. Moreover, on a QoQ foundation, it declined by 63 p.c from Rs 4,567 crore.
However, Financial institution of Baroda reported a internet curiosity earnings of Rs 11,435 crores in Q1 FY26, down by 1.4 p.c from its Q1 FY25 earnings of Rs 11,600 crores. Moreover, on a QoQ foundation, it declined by 0.51 p.c from Rs 11,494 crore.
BOB reported a internet revenue of Rs 4,541 crores in Q1 FY26, up by 1.9 p.c from its Q1 FY25 revenue of Rs 4,458 crores. Nevertheless, on a QoQ foundation, it declined by 10 p.c from Rs 5,048 crore.
Advances and Deposits
PNB’s whole deposits stand at Rs 15,89,379 crore in Q1 FY26, which grew by 12.9 p.c from its Q1 FY25 determine of Rs 14,08,247 crore and grew 1.5 p.c from its earlier quarter determine of Rs 15,66,623 crore.
Complete Advances stand at Rs 11,29,898 crore in Q1 FY26, which grew by 9.8 p.c from its Q1 FY25 determine of Rs 10,28,682 crore and grew 1.2 p.c from its earlier quarter determine of Rs 11,16,637 crore.
PNB’s Web Curiosity Margin (Home) declined 37 bps to 2.84 p.c as in comparison with 3.21 p.c a yr earlier. Moreover, it declined 12 bps from its earlier quarter margin of two.96 p.c.
However, BOB’s whole deposits stand at Rs 14,35,634 crore in Q1 FY26, which grew by 9.1 p.c from its Q1 FY25 determine of Rs 13,15,573 crore and declined 2.5 p.c from its earlier quarter determine of Rs 14,72,035 crore.
Complete Advances stand at Rs 12,07,056 crore in Q1 FY26, which grew by 12.6 p.c from its Q1 FY25 determine of Rs 10,71,681 crore and declined 1.9 p.c from its earlier quarter determine of Rs 12,30,461 crore.
BOB’s Web Curiosity Margin (Home) declined 24 bps to three.06 p.c as in comparison with 3.30 p.c a yr earlier. Moreover, it declined 10 bps from its earlier quarter margin of three.16 p.c.
Asset High quality
PNB’s GNPA% drastically improved by 120 bps to three.78 p.c in June 2025 as in comparison with 4.98 p.c a yr in the past. Its NNPA additionally improved by 22 bps to 0.38 p.c in June 2025 as in comparison with 0.60 p.c a yr in the past.
It has a slippage ratio of 0.71 p.c as in comparison with 0.76 p.c a yr earlier. Provision Protection Ratio (PCR) stands at 96.88 p.c as in comparison with 95.90 p.c a yr earlier.
BOB’s GNPA% improved by 60 bps to 2.28 p.c in June 2025 as in comparison with 2.88 p.c a yr in the past. Its NNPA additionally improved by 9 bps to 0.60 p.c in June 2025 as in comparison with 0.69 p.c a yr in the past. It has a slippage ratio of 1.16 p.c as in comparison with 1.05 p.c a yr earlier. Provision Protection Ratio (PCR) stands at 93.18 p.c as in comparison with 93.32 a yr earlier.
Different Ratios
PNB’s Return on Belongings (ROA) stands at 0.37 p.c in Q1 FY26, which declined 45 bps from 0.82 p.c in Q1 FY25, and declined 65 bps on a quarterly foundation. Moreover, Return on Fairness (ROE) declined by 1023 bps and at the moment stands at 6.59 p.c as in comparison with 16.82 p.c from Q1 FY25 and declined 1264 bps on a quarterly foundation.
Capital Adequacy Ratio (CAR) stands at 17.50 p.c in Q1 FY26, which declined by 171 bps from 15.79 p.c in Q1 FY25, additionally it declined by 49 bps from its earlier quarter.
BOB’s Return on Belongings (ROA) stands at 1.03 p.c in Q1 FY26, which declined 10 bps from 1.13 p.c in Q1 FY25, and declined 13 bps on a quarterly foundation.
Moreover, Return on Fairness (ROE) declined by 240 bps and at the moment stands at 15.05 p.c as in comparison with 17.45 p.c from Q1 FY25 and declined 244 bps on a quarterly foundation.
Capital Adequacy Ratio (CAR) stands at 17.61 p.c in Q1 FY26, which surged by 79 bps from 16.82 p.c in Q1 FY25; nonetheless, it elevated by 42 bps from its earlier quarter.
Conclusion
Each Punjab Nationwide Financial institution and Financial institution of Baroda had blended leads to Q1 FY26. Financial institution of Baroda confirmed stronger earnings, higher returns, and better margins, whereas Punjab Nationwide Financial institution did effectively in rising deposits and enhancing asset high quality.
In case you are in search of stability and regular efficiency, BOB appears higher positioned for now. However should you consider in a long-term restoration story, PNB might be price contemplating. As all the time, buyers ought to do their very own analysis earlier than making any selections.
Written by Satyajeet Mukherjee
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