Bank PNB projects reaching a record 300 billion rupees in total business by fiscal year 26's end, as declared by its Managing Director, Chandra.
Punjab National Bank (PNB) has set an ambitious target of reaching ₹30 lakh crore total business by the end of the current financial year (FY26). The bank plans to achieve this goal through an 11-12% credit growth and 9-10% deposit growth strategy [1][2][4].
PNB is focusing on expanding its corporate lending segment, with a pipeline of ₹1.29 lakh crore in various stages of disbursement [1]. The bank is also aiming to boost MSME loans by 17-18% and grow retail loans by around 17% [1].
To improve profitability, PNB is focusing on increasing low-cost Current Account Savings Account (CASA) deposits above 38% [1][2][4]. The bank is also maintaining a strong capital position, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 17.5% [1].
In terms of performance comparison at the end of Q1 FY26, PNB's total business grew 11.6% to ₹27.19 lakh crore. Bank of Baroda follows closely with ₹26.43 lakh crore, while Canara Bank stands at ₹25.64 lakh crore [2].
While PNB is slightly ahead in total business size compared to Bank of Baroda and Canara Bank, it is working on improving business loan growth and deposit franchise quality to sustainably achieve the ₹30 lakh crore target by FY26.
In Q1 FY26, PNB's overall loan growth was 9.6%, slightly below the target [3]. Business loans, which account for 43% of advances, grew only 6.9%, while MSME loans grew strongly at 18.6% and retail loans increased by 11.8% [3].
To revive project financing, PNB is focusing on infrastructure, smart metering, renewable energy, real estate, rental discounting, and data centers [3]. The bank is also curtailing bulk and corporate deposits to ensure profitability, emphasizing deposit quality and mix towards CASA [2][1].
PNB has obtained board approval for raising ₹8,000 crore of Tier I and Tier II capital [1]. The bank is also holding loan outreach programs for various segments, including MSME and agriculture, at regular intervals [1].
Moreover, PNB is anticipating a 30-40% growth in self-help group portfolio for the current year [1]. The bank is very mindful that whatever loan book they are going to build, it should make a good contribution to operating profit [1].
PNB recorded the highest ever operating profit of ₹7,081 crore in the first quarter of the current financial year [1]. The bank, which had a network of 10,209 branches and 11,240 ATMs across India, with an international presence as of June 2025 [1], is confident that there will be at least a double-digit growth from Q2 onwards in the corporate loan segment [2].
[1] Source: Business Standard [2] Source: Economic Times [3] Source: Financial Express
- Punjab National Bank (PNB) aims to reach ₹30 lakh crore total business by the end of the current financial year (FY26) through strategies of 11-12% credit growth and 9-10% deposit growth.
- The bank is focusing on expanding its corporate lending segment with a pipeline of ₹1.29 lakh crore in various stages of disbursement.
- PNB is working on boosting MSME loans by 17-18% and growing retail loans by around 17%.
- To improve profitability, the bank is focusing on increasing low-cost Current Account Savings Account (CASA) deposits above 38%, and maintaining a strong capital position with a Capital to Risk-Weighted Assets Ratio (CRAR) of 17.5%.
- In Q1 FY26, PNB's total business grew 11.6%, slightly ahead of Bank of Baroda and Canara Bank, but its overall loan growth was 9.6%, slightly below the target.
- PNB is reviving project financing by focusing on infrastructure, smart metering, renewable energy, real estate, rental discounting, and data centers.
- The bank is anticipating a 30-40% growth in its self-help group portfolio for the current year, and is confident of double-digit growth from Q2 onwards in the corporate loan segment.
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