PNB plans to sell 100 NPAs, increase business to Rs.30 Lakh Crore

Punjab National Bank (PNB), the country’s second-largest public sector lender, has announced plans to sell 100 non-performing asset (NPA) accounts to Asset Reconstruction Companies (ARCs) during the current financial year. According to PNB’s Managing Director and CEO, Ashok Chandra, the total book size of these accounts is estimated at ₹4,000–₹5,000 crore.

“We expect to recover anywhere between 40% and 50% of the total book value. In some cases, the recovery could even be 100% because the accounts are backed by strong security, while in others, the recovery might be lower,” said Chandra.

PNB is also aiming to cross the ₹30 lakh crore business milestone by the end of FY26, surpassing its earlier target of ₹29.56 lakh crore. As of June 30, 2025, PNB’s total business stood at ₹27.19 lakh crore, an increase of 11.6% year-on-year, keeping it ahead of Bank of Baroda and Canara Bank.

“PNB recorded its highest-ever operating profit of ₹7,081 crore in Q1 FY26. We have been consciously reducing bulk and corporate deposits to improve our margins. This year, we are targeting 11–12% credit growth and 9–10% deposit growth,” Chandra added.

Strong Corporate Loan Pipeline and Faster Approvals

PNB currently has a corporate loan pipeline worth ₹1.29 lakh crore at various stages of disbursement. The bank aims for double-digit growth in corporate loans starting from Q2 FY26.

“To improve efficiency, we have assured borrowers of decision-making within 15 days at the head office level. We have also created a dedicated cell led by a General Manager for project financing,” said Chandra.

Focus on MSME, Retail, and Agriculture Growth

In the MSME segment, PNB has achieved 17–18% growth so far this year and expects the same momentum to continue. Retail lending in housing, vehicle, and education loans is projected to grow at 17%. Agriculture will remain a priority area, with special emphasis on lending to self-help groups (SHGs).

“We anticipate 30–40% growth in SHG lending this year. We are also looking at opportunities in the food processing sector and infrastructure facilities such as godowns and cold storage in rural areas,” Chandra said.

Customer Outreach and Market Expansion

To promote lending, PNB is regularly conducting loan outreach programs across MSME, agriculture, and retail segments. These outreach programs are aimed at expanding the bank’s reach and improving credit delivery, especially in rural and semi-urban regions. PNB garnered a good amount of business in these outreach programs.

Click here to download Financial Results of PNB and other Banks – June 2025