Banking on a Bounce Back: PNB Eyes ₹16,000 Cr Recovery, Slippages Under 1%

Punjab National Bank (PNB) is charting an ambitious course for FY26, targeting a record ₹16,000 crore in recoveries while aiming to keep loan slippages below 1%, according to MD and CEO Ashok Chandra. This comes after PNB posted a robust 14% rise in total business to ₹26.83 lakh crore and doubled its net profit to ₹16,630 crore in FY25—making it the top performer among public sector banks.

 

Chandra outlined that the bank will focus heavily on recovering dues from technical write-off accounts, with ₹6,000 crore expected from this segment alone. The technical write-off book currently stands at ₹91,000 crore, and recoveries here directly boost the bank’s bottom line. PNB’s overall slippages ratio was already at a low 0.73% in FY25, and the bank expects to maintain quarterly slippages between ₹1,500 crore and ₹1,700 crore.

 

To further strengthen its portfolio, PNB plans to increase lending to the retail, agriculture, and MSME (RAM) sectors, targeting 58% of its loan book from RAM in FY26. With improved asset quality and a sharp focus on recoveries, PNB is positioning itself for sustainable growth and profitability in the new fiscal year.

 

Source: Economic Times, Business Standard, Reuters