Punjab National Bank's Profit Plunge: Struggling Under Higher Tax Burden

Punjab National Bank reported a significant decline of 48% in its standalone net profit for Q1 of 2025, primarily due to increased tax expenses, despite a rise in total and interest incomes. The bank's asset quality improved with a reduction in gross and net NPAs.


Devdiscourse News Desk | New Delhi | Updated: 30-07-2025 14:08 IST | Created: 30-07-2025 14:08 IST
Punjab National Bank's Profit Plunge: Struggling Under Higher Tax Burden
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Punjab National Bank (PNB) reported a sharp 48% decline in its standalone net profit for the first quarter of 2025, amounting to Rs 1,675 crore, affected mainly by increased tax expenses.

The state-owned bank's profits had been Rs 3,252 crore in the same quarter last year. Notably, total income increased to Rs 37,232 crore from Rs 32,166 crore, with interest income rising to Rs 31,964 crore compared to Rs 28,556 crore a year ago.

Despite a rise in operating profit to Rs 7,081 crore from Rs 6,581 crore, tax expenses more than doubled to Rs 5,083 crore. The bank's asset quality improved, with gross NPAs declining to 3.78% and net NPAs dropping to 0.38%. Provisions also saw a reduction, falling to Rs 323 crore from Rs 1,312 crore.

(With inputs from agencies.)

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