PNB suffered from Legacy Issues, Now Every business activity must lead to profit: PNB MD&CEO

Punjab National Bank (PNB), one of India’s leading public sector banks, is now on a new growth path. The bank has moved past its older challenges and is now focusing strongly on increasing its operating profit, which means it wants to earn more from its daily banking operations before accounting for other expenses. This strategic shift is aimed at helping PNB outperform its competitors not just this year, but in the future as well.

PNB’s Managing Director, Ashok Chandra, shared that the bank’s key areas of focus now include:

• Reducing non-performing assets (NPAs) – these are bad loans that are not being repaid.
• Growing low-cost deposits – such as savings and current accounts that help the bank raise funds at minimal cost.
• Increasing income from fees – like service charges, commissions, and other non-interest sources.
• Recovering bad loans – trying to get back money from borrowers who have not repaid in the past.

These steps have already started showing positive results.

• Also Read: Canara Bank’s 82,000 Employees Raised Rs.16,700 Crore in Just 10 Weeks
• Also Read: Net Profit of all Banks in March 2025 Quarter
• Also Read: Download Financial Results of all Banks for FY 2024-25 [PDF]

PNB Sees Strong Growth in Profit and Business

For the financial year ending March 2025, Punjab National Bank saw a massive 102% increase in its net profit, reaching ₹16,630 crore, up from ₹8,245 crore the previous year. This made PNB the top-performing public sector bank in terms of profit growth among the 12 PSBs in India.

In terms of overall business—which includes total deposits and loans—the bank recorded a 14% growth, reaching ₹26.83 lakh crore, one of the highest in India’s banking sector.

Cleaning Up the Past: PNB Reduces Bad Loans

Ashok Chandra also acknowledged that PNB had faced a lot of “legacy issues” in the past, especially a high amount of bad loans (NPAs). But the bank has worked hard to fix this problem:

• Gross NPA (total bad loans) is now below 4%
• Net NPA (after adjusting for recoveries and provisions) is down to just 0.5%

These improvements show that the bank is becoming healthier and more efficient. The bank aims to bring these numbers even lower in the current financial year.

Profit-Focused Strategy and Business with Purpose

Chandra highlighted that the bank is now working with a clear goal: every business activity must lead to profit. This message has been clearly communicated across all branches and teams. He emphasized that the bank will give special attention to improving operating profit, especially through growth in the RAM sectors – Retail, Agriculture, and MSME (Micro, Small, and Medium Enterprises) – and increasing CASA deposits (Current Account, Savings Account).

PNB, which is already India’s second-largest public sector bank by domestic business, now wants to achieve the same rank in terms of operating profit and net profit as well.

• Also Read: Net Profit of all Banks in March 2025 Quarter
• Also Read: Download Financial Results of all Banks for FY 2024-25 [PDF]
• Also Read: Canara Bank’s 82,000 Employees Raised Rs.16,700 Crore in Just 10 Weeks

New Customer-Centric Savings Schemes Launched

To support its growth plans, PNB has revamped its entire range of CASA products with fresh and attractive features. The bank has introduced tailor-made savings account schemes for various groups:

• Salaried individuals
• Non-salaried persons
• Women
• Senior citizens
• Youth and students
• Pensioners
• Defence personnel
• Farmers

These accounts come with customized benefits, designed to meet the specific needs of each category. This personalized approach aims to attract more customers and increase deposits.

Rapid Growth in New Accounts and Deposits

According to Chandra, in the last three months alone, PNB has opened 2 lakh new savings accounts for salaried individuals, helping the bank collect ₹300 crore in fresh deposits.

Looking ahead, the bank has set an ambitious target:

• Open 10 lakh new savings accounts in the next six months
• Raise ₹2,000 crore in deposits through these accounts

This push is expected to further strengthen the bank’s financial position and expand its customer base.

• Also Read: Canara Bank’s 82,000 Employees Raised Rs.16,700 Crore in Just 10 Weeks
• Also Read: Net Profit of all Banks in March 2025 Quarter
• Also Read: Download Financial Results of all Banks for FY 2024-25 [PDF]

Conclusion

Punjab National Bank is showing strong signs of revival and growth. With a clear focus on profits, better customer services, and reducing bad loans, the bank is on a mission to reclaim its leadership position in the Indian banking sector. New savings schemes, an emphasis on core business, and improvements in financial health are all part of its plan to become stronger, more profitable, and more customer-friendly in the years ahead.