PNB Ratings Reaffirmed by ICRA – What It Means for Investors
Punjab National Bank (PNB), one of India’s largest public sector banks, has seen its credit ratings reaffirmed by ICRA Limited, reflecting its strong financial health and stable outlook.
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New Delhi, December 6, 2025 – Punjab National Bank (PNB), one of India’s largest public sector banks, has seen its credit ratings reaffirmed by ICRA Limited, reflecting its strong financial health and stable outlook.
ICRA reaffirmed PNB’s ratings for instruments including Basel III Tier I Bonds, Infrastructure Bonds, Certificates of Deposit, and Fixed Deposits. Additionally, some matured bonds have been withdrawn following redemption. These ratings underscore the bank’s robust capitalisation, liquidity, and asset quality.
Key highlights include:
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Strong Sovereign Support: The Government of India holds a majority stake (70.08%) in PNB, providing continued confidence in its operations.
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Healthy Capitalisation & Solvency: Core equity capital (CET I) and Tier I ratios remain well above regulatory requirements.
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Improved Asset Quality: GNPA reduced to 3.45% as of September 2025, with net NPAs at 0.36% due to higher provision coverage.
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Stable Profitability: Despite some one-time tax impacts, internal capital generation remains strong, supporting growth.
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Large Deposit Base: With over 10,228 branches, PNB maintains a solid CASA ratio of 36%, ensuring liquidity and stability.
ICRA’s Stable outlook indicates that PNB is expected to maintain its strong credit profile, stable asset quality, and healthy profitability in the near-to-medium term.
About Punjab National Bank:
Founded in 1894, PNB merged with erstwhile United Bank of India and Oriental Bank of Commerce in 2020, becoming the third largest public sector bank in India by net advances. It serves millions of customers through a vast network of branches and ATMs and continues to play a significant role in India’s financial system.