PNB’s Recovery Playbook: Big Targets, Bigger Strategy

Punjab National Bank is setting ambitious goals for FY26, aiming to recover Rs 16,000 crore while keeping slippages below 1 percent. The bank’s strategy hinges on maximizing recoveries from technical write-off accounts, with Rs 6,000 crore expected from this segment alone.  

 

MD Ashok Chandra emphasized that preventing fresh slippages is a top priority. PNB’s overall slippage ratio stood at 0.73 percent in FY25, and the bank is determined to maintain discipline in asset quality. Quarterly slippages are projected to range between Rs 1,500 crore and Rs 1,700 crore, ensuring a steady approach to risk management.  

 

Beyond recoveries, PNB is expanding its lending focus on retail, agriculture, and MSMEs, targeting 58 percent of its loan book in these sectors. The move is designed to cushion against interest rate reductions in corporate lending and strengthen the bank’s profitability.  

 

With a net profit doubling to Rs 16,630 crore in FY25 and total business rising 14 percent to Rs 26.83 lakh crore, PNB is positioning itself as a leader in the public sector banking space. The road ahead is challenging, but the bank’s structured approach signals confidence in achieving its financial targets.  

 

Sources: Economic Times, Telangana Today, Rediff Money, MSN News, PTI Report