PNB's Strategic Shift Towards RAM Segment

State-owned Punjab National Bank (PNB) is setting ambitious targets to increase its lending to the Retail, Agriculture, and MSMEs (RAM) segment to 58% of its total loan book in the current financial year. This marks a rise from 56% in FY25, as disclosed by Managing Director and CEO Ashok Chandra.

Addressing Margin Pressures Through Strategic Lending

With RAM segment loans reaching Rs 6,02,682 crore at the end of FY25, accounting for 56% of total advances, PNB is looking to this strategic shift to mitigate margin pressures from potential rate cuts in corporate and repo-linked lending rate portfolios.

Enhancing MSME and Retail Lending

Chandra highlighted the bank's nationwide outreach drives in February, which significantly boosted retail and MSME lending. The bank is also introducing a cash flow-based digital lending facility for MSME loans up to Rs 25 lakh, aiming for swift sanctions within 5-7 minutes for existing customers.

Streamlining Home Loan Processing

On the retail front, PNB is forging partnerships with housing projects nationwide to simplify home loan processing, aiming to reduce turnaround time to 48-72 hours for approved projects.