Punjab National Bank (PNB), one of India's leading public sector banks, has set an ambitious goal to achieve Rs 30 lakh crore in total business by the end of fiscal year 2026, exceeding its official target of Rs 29.56 lakh crore. This announcement comes on the heels of strong performance in the first quarter, where the bank's total business grew by 11.6% to reach Rs 27.19 lakh crore.

Growth Strategy and Performance

PNB's Managing Director and CEO, Ashok Chandra, outlined the bank's strategy, which targets an impressive 11-12% credit growth and 9-10% deposit growth. The bank's focus on growth is already yielding results, as evidenced by its record-breaking operating profit of Rs 7,081 crore in the first quarter.

Corporate and MSME Lending

The bank is poised for significant expansion in its corporate lending portfolio, with a robust pipeline of Rs 1.29 lakh crore in various stages of disbursement. In a move to enhance efficiency and attract more corporate clients, PNB has committed to making loan decisions within 15 days.

The MSME segment has shown particularly strong growth, expanding by 17-18%. This aligns with the bank's strategy to support small and medium enterprises, which are crucial for India's economic growth.

Retail Banking Focus

PNB is not neglecting its retail banking operations, with core retail loans expected to grow at a healthy rate of 17%. This balanced approach between corporate and retail lending demonstrates the bank's commitment to serving diverse customer segments.

Deposit Strategy and Capital Position

In its pursuit of sustainable growth, PNB is focusing on increasing low-cost CASA (Current Account Savings Account) deposits, targeting to maintain these at over 38% of total deposits. This strategy aims to improve the bank's net interest margin and overall profitability.

The bank's capital position remains strong, with a Capital to Risk-weighted Assets Ratio (CRAR) of 17.5% and Common Equity Tier I at 12.95%. To further strengthen its capital base and support future growth, PNB has received board approval to raise Rs 8,000 crore in Tier I and Tier II capital.

Outlook

With its aggressive growth targets, strong performance in key segments, and robust capital position, Punjab National Bank appears well-positioned to achieve its ambitious goal of Rs 30 lakh crore in total business by the end of FY26. The bank's strategic focus on corporate lending, MSME growth, and retail expansion, coupled with its emphasis on low-cost deposits, sets a clear path for sustainable growth in the coming years.

Punjab National Bank (PNB), one of India's leading public sector banks, has outlined its strategic targets for the fiscal year 2026, focusing on improving key financial metrics and expanding its international presence. The bank's Managing Director and CEO, Ashok Chandra, recently shared these ambitious goals, highlighting PNB's commitment to strengthening its financial position and enhancing shareholder value.

Key Financial Targets for FY26

PNB has set forth several key targets for FY26:

Current Performance and Progress

The bank's performance in the first quarter of FY26 shows progress towards these targets:

Focus on Recoveries

A significant highlight of PNB's strategy is its target of Rs 16,000 crore in recoveries for FY26. MD and CEO Ashok Chandra expressed confidence in achieving this goal, which could significantly improve the bank's asset quality and profitability.

International Expansion

PNB is also focusing on expanding its international operations. The bank is strengthening its presence through branches in key global financial centers:

• London
• Dubai
• GIFT City (Gujarat International Finance Tec-City)

Chandra noted that despite thin margins, the bank is seeing a good flow of proposals in these international locations, indicating potential for growth in its global operations.

Outlook

The targets set by Punjab National Bank for FY26 reflect a strategic focus on improving its financial health, asset quality, and market position. By aiming for higher CASA share, better interest margins, and significant recoveries, PNB is positioning itself for sustainable growth in the coming years. The bank's efforts to expand internationally while maintaining strong domestic performance demonstrate its ambition to become a more prominent player in the global banking sector.

As PNB works towards these targets, stakeholders will be keenly watching the bank's progress, particularly in areas such as NPA reduction and recovery efforts. The success in achieving these goals could significantly enhance PNB's standing in the Indian banking sector and its appeal to investors.