PNB's Ambitious Growth Targets

Punjab National Bank (PNB) is setting its sights high, with a confident outlook on surpassing its total business target of Rs 29.56 lakh crore for the current financial year. The bank's managing director and CEO, Ashok Chandra, has expressed optimism about reaching the Rs 30 lakh crore milestone by March 2026, driven by a strategy focused on profit-led growth.

Record-Breaking Performance

The country’s second-largest lender has already shown impressive growth, recording a total business of Rs 27.19 lakh crore at the end of Q1 FY26, marking an 11.6% increase from the previous year. Chandra highlighted the bank's commitment to ensuring that growth in deposits and credit contributes positively to the bottom line, with a notable reduction in bulk and corporate deposits.

Strategic Focus Areas

With a credit growth target of 11–12% and deposit growth of 9–10% in FY26, PNB is also focusing on enhancing its corporate loan pipeline, which stands at Rs 1.29 lakh crore in various stages of disbursement. The bank is prioritizing loans that add to operating profit, moving away from low-yielding corporate loans.

Supporting SMEs and Agriculture

MSME lending, which saw a 17–18% growth last year, is expected to maintain its momentum, alongside a 17% growth target for core retail loans. Agriculture lending, especially to self-help groups (SHGs), is another key focus area, with an anticipated 30–40% growth in the SHG portfolio.

Strengthening Financial Foundations

PNB is also concentrating on mobilizing low-cost CASA deposits, aiming for them to exceed 38% of total deposits. Despite a strong capital adequacy ratio, the bank has board approval to raise Rs 8,000 crore through Tier I and Tier II bonds, ensuring sustained credit growth.