Punjab National Bank (PNB) is targeting a recovery of ₹16,000 crore in the current financial year. The bank also aims to keep loan slippages below 1% to maintain profitability, said MD& CEO of PNB.
Punjab National Bank (PNB) reported strong financial results for the third quarter ended December 31, 2025 (Q3 FY26), with a net profit of ₹5,100 crore, marking a 13.1% increase year-on-year (YoY) from ₹4,508 crore in the same period last year.
Also Read: Net Profit of All Banks in Q3FY26
In FY25, total recovery stood at ₹14,336 crore. The overall slippage ratio during FY25 was 0.73%.
PNB Managing Director and CEO Ashok Chandra said recovery and prevention of fresh bad loans will be key focus areas going forward. He said the bank is targeting a higher recovery of ₹16,000 crore in FY26, compared to about ₹14,000 crore in FY25.
He added that quarterly slippages are expected to remain in the range of ₹1,500 crore to ₹1,700 crore.
The bank will focus on recovery from technical write-off accounts. Ashok Chandra said around ₹6,000 crore recovery is expected from these accounts. PNB has set a minimum recovery target of ₹1,500 crore every quarter.
Also Read: Net Profit of All Banks in Q3FY26
The technical write-off book of the bank stands at around ₹91,000 crore. The provision coverage ratio is more than 96%. Any recovery from these accounts directly adds to the bank’s profit.
He said large stressed assets are no longer a major issue. However, there are many NPA accounts in the range of ₹25 crore to ₹50 crore, where recoveries are expected.
PNB also plans to increase lending to the RAM segment, which includes retail, agriculture, and MSMEs. The bank aims to raise RAM lending to 58% of its total loan book in FY26.
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At the end of FY25, loans under the RAM segment stood at ₹6,02,682 crore, accounting for 56% of the total loan book.
Ashok Chandra said increasing RAM lending will help offset losses caused by lower interest rates on corporate loans and repo-linked loans. Growth in RAM loan volumes will also help manage the impact of possible future rate cuts.
For the financial year ended March 2025, PNB recorded the highest profit growth among public sector banks. Its net profit rose by 102% to ₹16,630 crore, compared to ₹8,245 crore in the previous year.
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The bank also reported a 14% increase in total business, which reached ₹26.83 lakh crore in FY25, one of the highest growth rates in the banking sector.
PNB Key Q3 FY26 Performance Highlights:
- Operating Profit: Increased 13% YoY to ₹7,481 crore.
- Net Interest Income (NII): Rose 5% YoY to ₹11,032 crore.
- Asset Quality: Improved significantly, with Gross Non-Performing Assets (GNPA) declining to 3.19% from 4.09% a year ago. Net NPA reduced to 0.32% from 0.41%.
- Total Income: Rose to ₹37,253 crore from ₹34,752 crore in the year-ago period.
- Global Business: Reached ₹28.92 lakh crore, with deposits growing 8.5% and advances increasing 10.9%.
- Return on Assets (RoA): Improved to 1.06%.
