Moody’s Affirms PNB Rating With Stable Outlook; Flags Steady Asset Quality

Moody’s Ratings has affirmed Punjab National Bank’s issuer rating at “Baa3” with a stable outlook, the bank said on Tuesday. Its baseline credit assessment and adjusted BCA have been retained at “ba2”.

The rating reflects PNB’s stable operating profile, improving asset quality, and expected government support. Moody’s expects asset quality and profitability to remain steady over 12–18 months, backed by the bank’s liquidity strength and wide branch network.

Moody’s flagged risks from exposure to agriculture and MSMEs, and does not anticipate a near-term upgrade as the rating aligns with

India's sovereign rating. A downgrade could follow if the sovereign rating is cut or asset quality deteriorates significantly.
The rating agency has assigned PNB a profitability score of “ba3”, with expected net income to tangible assets between 0.8–1.0%.