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Rinse and drain the pinto beans, remove any small pebbles that may be present, and set them aside.
Set the Instant Pot to Saute and add the oil. Once the oil is hot, add the onion and cook, stirring occasionally, until the onion is tender and translucent. Add the garlic and cook for another minute or two until the garlic is fragrant.
Add the beans to the Instant Pot, then add the chili powder, cumin, salt, and pepper, as well as the bay leaf. Pour the broth and water over the beans. Stir to combine.
Close the lid and the vent, and set to cook on Manual for 50 minutes (at high pressure if your Instant Pot has that setting). It will take the Instant Pot about 8-10 minutes to come to pressure.
Once the cooking time is complete, allow the pressure to release naturally for 15 minutes before manually venting the remaining pressure.
Adjust seasoning with salt and pepper, if needed, and discard the bay leaf.
Garnish with cilantro and chopped onion, if desired.