PNB's Strategic Focus on Renewable Energy and Infrastructure

Punjab National Bank (PNB), India's second-largest state-run lender, is setting its sights on key sectors such as renewable energy, defence, roads, engineering, and transmission to fuel its growth. With a robust pipeline of over Rs 1.3 lakh crore in corporate loans, PNB is poised for significant expansion.

Ashok Chandra, PNB's Chief Executive & MD, highlighted the bank's strong pipeline, including Rs 1.1 lakh crore in corporate loans sanctioned last year and an additional Rs 21,000 crore approved in April. Chandra noted the minimal impact of tariffs and anticipates a 15-16% growth in corporate loans, buoyed by lower interest rates.

Retail Loans and Government Initiatives

PNB is also doubling down on retail loans, leveraging government initiatives to expand its Rs 8,500-crore education loan portfolio and meet the growing demand for home loans. The bank promises swift loan approvals within 48-72 hours for RERA-approved projects, supported by competitive rates as low as 7.95%.

Reducing Low-Yielding Corporate Loans

A healthy growth in retail loans is expected to help PNB reduce its reliance on low-yielding corporate loans. The bank has already shed Rs 30,000-35,000 crore from its corporate portfolio last quarter and plans to further reduce it by Rs 10,000-15,000 crore.

Innovative Deposit Schemes

To meet its credit flow requirements, PNB is launching innovative deposit schemes with special offers like cancer or health cover. Since April 13, nearly 1.8 lakh accounts have been opened, raising Rs 300 crore, with a target to open 10 lakh accounts in three months.