More Stories

Informist, Tuesday, May 5, 2026

 

--PNB: Sanctioned over INR 4 tln in corporate credit line in FY26 

--CONTEXT: Comments by PNB's management in post-earnings analyst concall 

--PNB MD: Have enough cushion to take care of implementation of ECL norms 

 

By Shubham Rana and J. Navya Sruthi

 

MUMBAI/NEW DELHI – Punjab National Bank Ltd. sanctioned over INR 4 trillion in corporate credit lines during 2025-26 (Apr-Mar), the lender's Managing Director and Chief Executive Officer Ashok Chandra said Tuesday. Of this, INR 1.18 trillion is still pending for disbursement, which will support credit growth, Chandra said.

 

"Future credit growth remains well-supported by a strong pipeline," Chandra told analysts in a post-earnings conference call. The bank reported a net profit of INR 52.25 billion for the March quarter, up 14% on year.

 

The bank's global advances rose 12.7% on year to INR 12.59 trillion as on Mar. 31. Credit growth in FY26 was higher than the bank's guidance of 11-12% for the year. For FY27, the bank has guided for 12-13% credit growth. 

 

The lender aims to reduce the share of corporate loans in its total loan book to 40% from 43% at present, the management said. The bank will instead focus more on the 'retail, agriculture, and micro, small, and medium enterprises' segment, and aims to increase its share in the total loan book to around 60% from 57% as of end-March.

 

"So, the moment my corporate loan book starts coming down and it comes to around 40% and the RAM (retail, agriculture, and MSME) share becomes 60%, I think the lever of the NII (net interest income) will definitely improve," Chandra said. 

 

The bank has enough cushion, including a floating provision of INR 20.45 billion, to manage any impact from the implementation of expected credit loss framework, Chandra said. The Reserve Bank of India last month issued final expected credit loss norms with implementation from Apr. 1, 2027. Chandra said the bank would be a in a position to better assess the impact of the new framework in a few months.

 

The bank's net interest income fell 3.5% on year to INR 103.80 billion in the March quarter. The lender expects net interest income to rise 7% in FY27 after falling 1.9% in FY26. Shares of the state-owned bank Tuesday ended 0.7% lower at INR 107.89 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.