Punjab National Bank (PNB) has identified more than 100 non-performing assets (NPAs) for sale to asset reconstruction companies (ARCs) in FY26, with an outstanding book value of ₹4,000–5,000 crore, Managing Director and CEO Ashok Chandra told PTI.
Chandra said the bank expects an average recovery of 40–50% from these accounts, with some cases potentially yielding full recovery due to strong collateral. “We are anticipating good recoveries this year, and in some accounts, we may even achieve 100%,” he said.
Aggressive Growth Plans
The country’s second-largest public sector bank is aiming to cross the ₹30 lakh crore total business milestone by March 2026, exceeding its initial target of ₹29.56 lakh crore.
PNB’s total business rose 11.6% year-on-year to ₹27.19 lakh crore in Q1 FY26, followed by Bank of Baroda at ₹26.43 lakh crore and Canara Bank at ₹25.64 lakh crore.
Chandra emphasised that growth will be profit-oriented, with the bank recording its highest-ever operating profit of ₹7,081 crore in Q1 FY26. “Whether it is deposits or corporate loans, every addition must strengthen the bottom line,” he said, adding that bulk deposits have been reduced and corporate deposits curtailed.
The bank is targeting 11–12% credit growth and 9–10% deposit growth this fiscal.
Strong Corporate Loan Pipeline
PNB has a corporate loan book pipeline of ₹1.29 lakh crore in various disbursement stages. The bank has shifted away from low-yielding corporate advances and is focusing on high-return projects, including project finance, supported by a dedicated General Manager-led cell.
Chandra also highlighted faster decision-making, assuring corporate borrowers that any proposal reaching the head office will receive a decision within 15 days.
Focus on MSMEs, Agriculture and Rural Lending
PNB’s MSME portfolio grew 17–18% last year, and similar growth is expected in FY26. Core retail loans in housing, vehicle, and education are also projected to grow at 17%.
The bank is increasing focus on agriculture, especially self-help groups (SHGs), aiming for 30–40% growth in the SHG portfolio this year. It is also investing in the food processing sector and infrastructure facilities like godowns and cold storage in rural areas.
To boost lending, PNB is holding regular loan outreach programmes for MSME, agriculture, and other priority sectors.
