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Business Standard
25-05-2025
- Business
- Business Standard
PNB targets ₹16k-cr recovery, aims to keep slippages below 1% in FY26: MD
Punjab National Bank (PNB) is targeting a significant recovery of Rs 16,000 crore and aims to keep slippages below 1 per cent in the current fiscal year to sustain profitability, the top official of the country's second biggest state-owned lender said. The total recovery of the bank stood at Rs 4,733 crore for the fourth quarter and Rs 14,336 crore for FY25 while overall slippages ratio was 0.73 per cent during the last financial year. "Going forward, maximization of recovery and preventing fresh slippages are going to be priority areas. We are targeting a higher total recovery of Rs 16,000 crore as against of recovery of about Rs 14,000 crore in FY' are expecting that the quarterly our slippages will be in the range of around Rs 1,500 crore to Rs 1,700 crore," PNB MD and CEO Ashok Chandra told PTI in an interview. The bank is going to focus on recovery through the technical write off accounts, he said, adding, "I am expecting that Rs 6,000 crore of recovery will happen in the technical right off book. So, we have set up a target of Rs 1,500 crore of minimum recovery every quarter." The technical write off book of the bank stands around Rs 91,000 crore with the provision coverage ratio of more than 96 per cent and recoveries from such accounts are added to the bottomline directly. Chunky assets are no longer there but there are a lot of NPA accounts in the range of Rs 25 crore to Rs 50 crore where recoveries are expected, he added. The bank also plans to expand its RAM (retail, agriculture and MSMEs) sector lending to 58 per cent of its loan book in the current financial year with the help of various initiatives taken, including loan outreach. The bank closed FY25 with loan outstanding under RAM segment at Rs 6,02,682 crore, 56 per cent of the loan book. "We are planning to increase RAM from 56 per cent to 58 per cent in this financial year because that will give me the cushion against loss which is happening due to reduction in the interest rate in the corporate and the RLLR (repo-linked lending rate) loan book," he said. The volume increase in the RAM segment will help compensate for a loss due to further rate cuts, he said. For the financial year ended March 2025, PNB has emerged as the top bank in terms of profit growth among 12 public sector banks (PSBs) with a 102 per cent rise. The bank's net profit doubled to Rs 16,630 crore compared to Rs 8,245 crore in the previous fiscal. The bank has reported a 14 per cent rise in total business at Rs 26.83 lakh crore in FY25, one of the highest in the banking system. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
12-05-2025
- Business
- Time of India
PNB targets 58% of loan book from RAM segment in FY26 to offset rate-linked margin pressure
State-owned Punjab National Bank (PNB) is aiming to expand its lending to the RAM segment—comprising Retail, Agriculture, and MSMEs—to 58 per cent of its total loan book in the current financial year, up from 56 per cent in FY25, according to Managing Director and CEO Ashok Chandra. The bank ended FY25 with RAM segment loans standing at Rs 6,02,682 crore, accounting for 56 per cent of its total advances. The planned increase in RAM exposure, Chandra said, will help cushion the bank against margin pressure arising from rate cuts in corporate and repo-linked lending rate (RLLR) portfolios, according to news agency PTI. "We are planning to increase RAM from 56 per cent to 58 per cent in this financial year because that will give me the cushion against loss which is happening due to reduction in the interest rate in the corporate and the RLLR loan book," Chandra told PTI in an interview. He added that the expected volume growth in RAM lending will help offset income loss resulting from potential interest rate cuts. Highlighting the bank's strategy, Chandra said PNB conducted nationwide outreach drives in February to boost retail and MSME lending, which yielded significant results. "Whatever our average monthly book was there in the entire financial year, almost 1.5 times extra has been done in March due to outreach initiatives. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3 to 5 BHK Premium Apartments starting at ₹3.22Cr+ Goodwill Wisteria Learn More Undo This activity we are going to continue during this financial year as well," he said. To further strengthen MSME lending, Chandra said the bank has rolled out a cash flow-based digital lending facility for loans up to Rs 25 lakh. "Anybody can go to our website and apply for an MSME loan by submitting a few details. Through the account aggregator and fintech in place, we are going to give the sanction to our existing customers within 5–7 minutes," he said. On the retail side, Chandra revealed that PNB is working on forming partnerships with housing projects across the country to streamline home loan processing. "We are going in a massive way for approving their projects, so that once the project approval is there, and if any applicant is applying for a housing loan for that particular project, they need not go for the separate legal opinion or valuation," he said. This initiative, he noted, will significantly reduce turnaround time. "We can minimise the time and if anybody applies for the approved project, we are going to ensure that within 48 to 72 hours we should be in a position to give the sanction," Chandra added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
12-05-2025
- Business
- Business Standard
PNB aims 58% of total loan book in FY26 from retail, agri, MSME loans: MD
State-owned Punjab National Bank (PNB) proposes to expand its RAM (retail, agriculture and MSMEs) sector lending to 58 per cent of its loan book in the current financial year with the help of various initiatives taken, including loan outreach. The bank closed FY25 with loan outstanding under RAM segment at Rs 6,02,682 crore, 56 per cent of the loan book. "We are planning to increase RAM from 56 per cent to 58 per cent in this financial year because that will give me the cushion against loss which is happening in due to reduction in the interest rate in the corporate and the RLLR (repo-linked lending rate) loan book," PNB MD & CEO Ashok Chandra told PTI in an interview. The volume increase in the RAM segment will help compensate for a loss due to further rate cuts, he said. Sharing the various initiatives taken to increase RAM, Chandra said the bank had conducted outreach activities for giving push to both retail and MSME lending in February on pan-India basis and these yielded a good result. "Whatever our average monthly book was there in the entire financial year, almost 1.5 times extra has been done in March due to outreach initiatives. This activity we are going to continue during this financial year as well," he said. Besides, he said, PNB has started cash flow-based digital lending facility for the MSME unit up to Rs 25 lakh. "Anybody can go to our website and apply for an MSME loan by submitting a few details. Through the account aggregator and fintech in place, we are going to give the sanction to our existing customers within 5-7 minutes," he said. For retail, he said, the bank is working on a proposal for tie-up with housing projects across the country. "We are going in a massive way for approving their projects, so that once the project approval is there, and if any applicant is applying for a housing loan for that particular project, they need not go for the separate legal opinion or valuation," he said. So, he said, "We can minimise the time and if anybody applies for the approved project, we are going to ensure that within 48 to 72 hours we should be in a position to give the sanction.
Time of India
12-05-2025
- Business
- Time of India
PNB banks on corp, retail loan flow to boost growth
Representative image NEW DELHI: Punjab National Bank , the country's second-largest state-run lender, will focus on renewable energy , defence, roads, engineering, and transmission as it seeks to build upon the over Rs 1.3 lakh crore corporate loans that are in the pipeline. "We are beefing up our focus on three to four sectors in the large corporate segment. We have a very strong pipeline of over Rs 1.1 lakh crore corporate loans that were sanctioned last year but were not disbursed, and another Rs 21,000 crore were approved in April," PNB chief executive & MD Ashok Chandra told TOI. He said that so far, there was little impact of tariffs. "From the corporate loan sanctions, you can see there is a lot of activity. The growth can be 15-16%. Lower interest rates will also help the offtake of corporate and retail loans ," he said, adding that the bank has lined up a strong retail push, apart from agriculture and MSMEs. Operation Sindoor 'Our job is to hit target, not to count body bags': Air Marshal Bharti on Op Sindoor Precautionary blackout imposed across parts of Rajasthan, Punjab 'Indian Navy was in position to strike Karachi': Vice Admiral on Operation Sindoor While it looks to double its exposure to self-help groups to over Rs 20,000 crore this year, PNB is also focusing on retail loans, tapping into govt's focus and expects its Rs 8,500-crore education loan portfolio to expand significantly. Besides, it will tap into the growing demand for home loans, promising to sanction loans within 48-72 hours for projects that have received RERA approval. Lower rates are expected to be especially useful, given that PNB has lowered rates to 7.95%. A healthy growth in the retail loan segment is expected to help the bank reduce the weight of low-yielding corporate loans. In the last quarter, it shed Rs 30,000-35,000 crore of such loans from its corporate portfolio, and the plan is to reduce it by another Rs 10,000-15,000 crore. Chandra said the bank is generating a healthy flow of term deposits to meet its credit flow requirements, and the recently launched deposit schemes that come with special offers such as cancer or health cover will help it mop up current and savings account balances. Since April 13, nearly 1.8 lakh accounts were opened, raising Rs 300 crore, and the target is to open 10 lakh such accounts in three months to rake in Rs 2,000-3,000 crore in a year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
11-05-2025
- Business
- Business Standard
Indo-Pak tensions: PSBs fortified ops in sensitive areas along border
In the midst of ceasfire with Pakistan and its violation by the neighbouring country, branches of public-sector banks (PSBs) in bordering states have ramped up preparedness with cash and defences against cyberattacks. Senior officials in at least four PSBs and one small finance bank with a strong presence in these regions said there had been a significant inflow of cash, prompting intensified efforts to ensure its availability. 'We are adhering to the directives of the local administration regarding operating hours. Additionally, we are taking steps to ensure adequate cash availability at both ATMs and bank branches,' said a public-sector banker. Last Friday, Union Finance Minister Nirmala Sitharaman asked banks and financial institutions to ensure that all digital and core banking infrastructure was firewalled and monitored round the clock to prevent breaches or hostile cyberattacks. Banks such as Punjab & Sind Bank, Canara Bank, Union Bank of India, and Punjab National Bank have asked their circle heads to stay in their zonal offices. Some banks have been asked to operate during weekends. 'We have strengthened our cybersecurity systems to counter cyberattacks. A 24-hour war room has been established, and our teams are working on all intelligence inputs,' said Ashok Chandra, managing director (MD) and chief executive officer (CEO), Punjab National Bank, in a statement to Business Standard. Chandra added special instructions had been given to branches near border areas to ensure employee safety and keep ATMs stocked with cash. Another senior banker in a PSB noted vigilance had been heightened in anticipation of cyber threats. 'We need to stay alert regarding cyberattacks,' the banker said. Meanwhile, bankers also highlighted a surge in cash inflow in border states owing to wheat harvesting in the Kharif season. 'Given our strong presence in rural and semiurban areas, and with wheat harvesting underway, there has been a healthy inflow of funds. On March 31, our deposits stood at ₹8,323 crore, and as on May 9, they rose to ₹8,790 crore. This increase is primarily due to seasonal inflows. We have ATMs at every branch and are ensuring they remain fully stocked with cash,' said Sarvjit Singh Samra, MD and CEO, Capital Small Finance Bank. According to the latest data from the Reserve Bank of India (RBI), Jammu & Kashmir, Punjab, Rajasthan, Gujarat, and Himachal Pradesh together accounted for 12.81 per cent of India's bank deposits — ₹26.21 trillion — and 13.41 per cent of advances — ₹22.13 trillion — as of March 2024. An internal letter on May 1 from Punjab & Sind Bank, reviewed by Business Standard, stated: 'As a critical sector entity, it is imperative that we take all necessary steps to prevent service disruptions and ensure business continuity. In the event of any untoward incident, field staff should remain calm and report immediately to the head office.'
