August 4, 2025

Punjab National Bank (PNB) is gearing up to achieve a monumental milestone of Rs 30 lakh crore in total business by the end of the current financial year. The bank's Managing Director and CEO, Ashok Chandra, shared insights on this ambitious target, highlighting the bank's strategies and strong performance during the first quarter. As of the end of June 2025, PNB reported a total business increase of 11.6% to reach Rs 27.19 lakh crore. This positions it as the second-largest lender in India, following Bank of Baroda and Canara Bank, which reported total businesses of Rs 26.43 lakh crore and Rs 25.64 lakh crore, respectively. Chandra stated, "We have a target of Rs 29.56 lakh crore for the current financial year, but there is a possibility we could even reach Rs 30 lakh crore by March next year. However, it is crucial that any top-line growth also translates into profit for the bank." The bank is focused on not only increasing its total business but also ensuring that it is profitable, as evidenced by its record operating profit of Rs 7,081 crore in the first quarter. Chandra underscored the importance of aligning deposit mobilization and loans with profitability. As part of this strategy, bulk deposits have been reduced, and corporate deposits have been cut down significantly. The bank aims for a minimum of 11-12% credit growth and 9-10% deposit growth for FY26. Currently, PNB has a robust pipeline for corporate lending, which is set at Rs 1.29 lakh crore, currently in various stages of disbursement. Previous growth had been muted due to a low-yielding corporate loan book that has since been offloaded, allowing the bank to focus on loans that enhance its operating profit. Furthermore, Chandra indicated confidence in achieving double-digit growth from the second quarter onwards in the corporate loan segment. The bank is notably active in corporate lending, promising borrowers a decision within 15 days of application to build trust. There is also a dedicated project finance team led by a General Manager to facilitate operations in this sector. For MSME lending, PNB has enjoyed growth rates of 17-18% and anticipates this to continue. Core retail loans, including housing, vehicle, and education loans, are also projected to grow consistently at 17%. Agriculture lending has gained importance for PNB, particularly through self-help groups, aimed at small and marginal farmers, with an expected growth rate of 30-40% over the year. The bank is investing in food processing and rural infrastructure, such as godowns and cold storage facilities. To further promote lending, PNB has been engaging in loan outreach programs targeted at various segments, including MSME and agriculture. On the deposit front, Chandra noted the bank's emphasis on low-cost CASA deposits, which are expected to surpass 38% of total deposits. While institutional deposits are declining, individual savings accounts are on the rise, contributing to the stability of the CASA ratio. Concerning capital mobilization, PNB currently holds a CRAR of 17.5%, with a common equity Tier I ratio of 12.95%. Although the bank is not actively seeking to raise additional capital, it has received board approval to raise Rs 8,000 crore in Tier I and Tier II capital to ensure adequate capacity for sustaining a minimum credit growth rate of 11-12%. Established in May 1894, PNB operates over 10,000 branches and ATMs in India and has expanded internationally with a subsidiary in the UK and branches in Hong Kong and Dubai.

Read More at Economictimes →

Tags: Punjab national bank, Financial growth, Corporate lending, Banking strategy,