PNB Aims to Cross Rs.30 Trillion in Total Business by March 2026
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Punjab National Bank (PNB), the second-largest public sector bank in India, is aiming to achieve a major milestone of ₹30 trillion in total business by the end of the current financial year. According to the bank’s MD and CEO, Ashok Chandra, PNB has implemented the right strategy to meet this goal. As of the end of the first quarter of FY 2025–26, the bank’s total business grew by 11.6%, reaching ₹27.19 lakh crore. PNB is currently ahead of other major banks, with Bank of Baroda at ₹26.43 lakh crore and Canara Bank at ₹25.64 lakh crore, as of June 30, 2025.
| Bank | Business |
|---|---|
| PNB | ₹27.19 lakh crore |
| Bank of Baroda | ₹26.43 lakh crore |
| Canara Bank | ₹25.64 lakh crore |
Chandra stated that the bank’s target for the financial year is ₹29.56 lakh crore, but based on current performance, there is a strong possibility that the bank may cross the ₹30 trillion mark by March 2026. However, he stressed that growth must be profitable and sustainable. In the first quarter itself, PNB recorded its highest-ever operating profit of ₹7,081 crore. The bank is focused on ensuring that both deposit mobilisation and lending activities contribute positively to its bottom line. To improve profitability, PNB has reduced its dependence on bulk and low-yield corporate deposits.
Click here to download Financial Results of PNB and all Banks for June 2025 Quarter
The bank has set targets of 11–12% credit growth and 9–10% deposit growth for the current financial year. It has a healthy corporate loan pipeline worth ₹1.29 lakh crore, which is currently in various stages of disbursement. In the past, the bank had a low-yielding corporate loan portfolio, but it has since been restructured. Now, the focus is on building a loan book that directly contributes to operating profit. Chandra is confident that from the second quarter onwards, the corporate loan segment will register double-digit growth.
PNB is also becoming more aggressive in corporate lending by ensuring that loan decisions are taken within 15 days at the head office level. This efficient decision-making process has improved the confidence of corporate borrowers. In addition, the bank has set up a dedicated project finance cell, headed by a General Manager, to focus on financing infrastructure and large-scale projects.
The bank’s performance in the MSME sector has been strong, with 17–18% growth, a trend that is expected to continue. Retail loans, including housing, vehicle, and education loans, are also projected to grow at a rate of 17%. Agriculture lending is another key focus area for PNB. The bank is paying special attention to self-help groups, which support small and marginal farmers, and expects a 30–40% growth in this segment. Efforts are also being made to support the food processing sector and build infrastructure in rural areas, such as godowns and cold storage facilities.
Click here to download Financial Results of PNB and all Banks for June 2025 Quarter
On the deposit side, PNB is prioritising the mobilisation of low-cost CASA (Current Account and Savings Account) deposits, which are projected to cross 38% of total deposits. The bank is gradually reducing its reliance on institutional deposits and is seeing an increase in individual savings accounts, which are more stable and cost-effective.
In terms of capital, PNB currently has a strong capital adequacy ratio of 17.5%, with Common Equity Tier-I at 12.95%. While there is no immediate need to raise capital, the bank has received board approval to raise up to ₹8,000 crore through Tier-I and Tier-II bonds if necessary. Chandra stated that this level of capital is sufficient to support the bank’s projected credit growth of at least 11–12% for the year.
Click here to download Financial Results of PNB and all Banks for June 2025 Quarter
