MUMBAI: Punjab National Bank reported a standalone net profit of Rs 5,253 crore for the quarter ended June 30, 2026, up 213.6% from Rs 1,675 crore a year earlier, aided by a sharp decline in tax outgo despite lower non-interest income. The bank reported a consolidated net profit of Rs 5,921 crore, up 228.4% from Rs 1,803 crore in the corresponding quarter last year.Net interest income (NII), calculated as interest earned minus interest expended, rose 2.1% to Rs 10,798 crore from Rs 10,578 crore a year earlier. Interest earned increased 2.9% to Rs 32,897 crore from Rs 31,964 crore, supported by growth in advances, while interest expended rose 3.3% to Rs 22,099 crore from Rs 21,386 crore, reflecting higher funding costs and deposit growth. Interest expense grew marginally faster than interest income, limiting the expansion in NII.Non-interest income declined 17.7% to Rs 4,333 crore from Rs 5,268 crore, weighing on operating income. The decline was led by lower treasury income and lower recoveries from written-off accounts, although fee-based income increased 4%.Global deposits stood at Rs 17.25 lakh crore at the end of June 2026, rising 0.8% sequentially from Rs 17.11 lakh crore at the end of March 2026. Global advances increased 1.2% quarter-on-quarter to Rs 12.73 lakh crore from Rs 12.59 lakh crore.Total income remained broadly flat at Rs 37,231 crore against Rs 37,232 crore a year ago. Higher NII offset part of the decline in non-interest income.Operating profit increased 6.2% to Rs 7,519 crore from Rs 7,081 crore. Operating expenses declined 13.1% to Rs 7,613 crore from Rs 8,765 crore, supporting profitability despite lower operating income.Provisions other than tax increased 67.6% to Rs 541 crore from Rs 323 crore, limiting profit growth. However, the bank’s provision for income tax fell 66.1% to Rs 1,725 crore from Rs 5,083 crore, providing the main boost to net profit.Asset quality improved further, with gross NPA declining to 2.78% from 3.78% a year earlier and net NPA easing to 0.28% from 0.38%. The bank’s capital adequacy ratio (CRAR) improved to 18.13% from 17.50% a year earlier, while the CET-1 ratio rose to 14.52% from 12.95%.