Fitch Affirms Punjab National Bank At ‘BBB-/Stable’, Upgrades Viability Rating To ‘BB

Fitch Ratings announced that it has affirmed Punjab National Bank’s Long-Term Issuer Default Rating (IDR) at ‘BBB-/Stable’ and simultaneously upgraded its Viability Rating to ‘BB’. The rating agency highlighted that the upgrade reflects PNB’s improved financial fundamentals, including better asset quality, enhanced profitability, and stronger capital adequacy.  

Key Highlights  

• Fitch affirms PNB’s Long-Term IDR at ‘BBB-/Stable’  
• Viability Rating upgraded to ‘BB’ from previous level  
• Improved asset quality and profitability cited as key drivers  
• Capital buffers strengthened, supporting resilience against risks  
• Government support continues to underpin overall credit profile  

Strategic Impact  
The rating action signals growing confidence in PNB’s operational stability and financial health. Analysts note that the upgrade in Viability Rating reflects the bank’s ability to withstand challenges independently, beyond sovereign support. The affirmation of the IDR highlights the importance of government backing, while the upgrade underscores PNB’s progress in risk management and profitability. This development is expected to boost investor sentiment and reinforce PNB’s standing in India’s banking sector.  

Sources: Reuters, Economic Times, Business Standard