New Delhi: In a strong push towards balance sheet clean-up and profitability, Punjab National Bank (PNB) has identified over 100 non-performing asset (NPA) accounts worth ₹4,000–₹5,000 crore for sale to Asset Reconstruction Companies (ARCs) in the current financial year (FY26). The move is part of the bank’s intensified recovery strategy, with a minimum recovery target of 40–50%, and some accounts expected to yield even higher due to strong collateral backing.
Speaking to PTI, PNB Managing Director and CEO Ashok Chandra said the bank is optimistic about its recovery outlook for FY26.
“We expect to recover something in the range of 40–50% minimum… through that route also, we are expecting a good recovery should happen this financial year,” Chandra said.
Business Milestone in Sight: ₹30 Lakh Crore by FY26
PNB, India’s second-largest public sector bank, is also eyeing a major business milestone. The bank aims to cross ₹30 lakh crore in total business by March 2026, surpassing its interim goal of ₹29.56 lakh crore.
As of June 30, 2025, PNB’s total business stood at ₹27.19 lakh crore, marking an 11.6% year-on-year growth, placing it close behind Bank of Baroda and Canara Bank in terms of size.
“We are very mindful that whatever top line we are going to build, it should add profit to my bank,” Chandra added.
Notably, PNB reported its highest-ever quarterly operating profit of ₹7,081 crore in Q1 of FY26.
Strategic Shift in Lending and Deposits
To achieve its business and profitability goals, PNB has set–
- Credit growth target of 11–12%
- Deposit growth target of 9–10% for FY26
The bank has reoriented its strategy away from low-yielding corporate loans and bulk deposits and is now focused on profitable lending segments. The corporate loan pipeline currently stands at ₹1.29 lakh crore, with disbursements at various stages.
From Q2 FY26, the bank is targeting double-digit corporate loan growth, aided by a 15-day loan decision timeline to increase corporate confidence. A dedicated project finance cell, led by a General Manager, has been established to expedite infrastructure and large-project financing.
Retail, MSME, and Agriculture Growth Drivers
PNB’s MSME loan portfolio has seen robust growth of 17–18%, a trend the bank expects to continue through FY26. Similarly, retail lending – including home loans, auto loans, and education loans—is projected to grow at 17%.
The bank is also betting big on priority sector lending, particularly:
- Self-help group (SHG) lending, expected to grow by 30–40%
- Food processing sector
- Rural infrastructure projects such as cold storage and godowns
To boost credit outreach, PNB is conducting regular loan melas and outreach programmes in rural and semi-urban areas, focusing on MSME and agriculture sectors.
A Balanced Growth and Profitability Approach
With a multi-pronged strategy focused on NPA recovery, smart credit expansion, and sectoral focus, PNB aims to strengthen both its top line and bottom line in FY26. The renewed operational push could also bolster investor and stakeholder confidence in the bank’s turnaround strategy.
