Punjab National Bank — Credit Ratings, 10-06-2025: Credit Rating

Moody’s has reaffirmed Punjab National Bank’s long-term deposit rating at Baa3 with a stable outlook, reflecting steady asset quality improvement and stable profitability. The gross NPL ratio improved to 3.9%, backed by strong loan loss coverage of 96.8%. Profitability rose to 0.9% net income/tangible assets, aided by lower credit costs and treasury gains despite a slight dip in net interest margin. Capital position strengthened with a Common Equity Tier 1 ratio of 12.3%, supported by a ₹500 Cr qualified institutional placement and ₹300 Cr Tier 2 capital raise. Strong liquidity, low reliance on market funds, and about 85% funding via customer deposits reinforce the credit profile. The stable rating supports borrowing costs and investor confidence.