Punjab National Bank (PNB), the country’s second-largest state-owned lender, has set an ambitious recovery target of Rs. 16,000 crore for the current financial year, with a focus on minimizing slippages to below 1 percent to ensure sustained profitability.
According to Mr. Ashok Chandra, MD & CEO of PNB, the bank achieved a recovery of Rs. 4,733 crore in the fourth quarter and Rs. 14,336 crore for the entire FY25. The overall slippages ratio for the year stood at 0.73 percent. “Maximization of recovery and preventing fresh slippages are going to be priority areas. We expect quarterly slippages to remain in the range of Rs. 1,500–1,700 crore,” Mr. Chandra said in an interview with PTI.
The bank is particularly focused on recoveries from technically written-off accounts, where it expects Rs. 6,000 crore of recovery in FY26. The technical write-off portfolio stands at around Rs. 91,000 crore, with a provision coverage ratio of over 96 percent—ensuring that any recoveries from this book contribute directly to the bank’s bottom line. While large NPA accounts have mostly been resolved, recoveries are expected from mid-sized accounts ranging from Rs. 25 crore to Rs. 50 crore.
PNB is also planning to expand its RAM (Retail, Agriculture, and MSMEs) loan portfolio from 56 percent to 58 percent of the total loan book, which stood at Rs. 6.02 lakh crore at the end of FY25. This strategic shift is aimed at cushioning the impact of potential interest rate reductions on corporate and repo-linked loans.
For FY25, PNB reported the highest profit growth among public sector banks, with a 102 percent rise in net profit to Rs. 16,630 crore from Rs. 8,245 crore the previous year. The bank also saw a 14 percent increase in total business, reaching Rs. 26.83 lakh crore—among the highest in the Indian banking sector.
Punjab National Bank
Punjab National Bank (PNB) is India’s second-largest public sector bank, offering a wide range of financial services across retail, corporate, and international banking. Established in 1894, PNB plays a pivotal role in the country’s banking landscape with a strong nationwide presence.
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