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Informist, Saturday, Jul. 18, 2026

 

--PNB MD: Disbursed loans worth over INR 125 bln under ECLGS 5.0 
--PNB MD: Hoping to touch MSME credit growth of 25% in FY27 
--PNB MD: Weak monsoons could drag many business verticals 
--PNB MD: Digital spending to touch INR 30-40 billion in FY27 
--PNB MD: See treasury income of INR 9-10 bln per qtr in FY27 
--PNB MD: Will see improvement in NII, NIM in each quarter of FY27 
--PNB MD: Confident of NIM improving QoQ going forward 
--PNB MD: Credit growth expected to be strong in FY27 on robust loan pipeline 
--PNB MD: Remain on track to achieve all guidance for FY27 

 

By Priyasmita Dutta and Ruchira Kagita

 

NEW DELHI/MUMBAI – Punjab National Bank is targeting quarterly treasury income of INR 9 billion – INR 10 billion in 2026-27 (Apr-Mar), Managing Director and Chief Executive Officer Ashok Chandra said on Saturday. This will help the bank improve its overall profitability, which is the primary focus for the public sector bank, Chandra said in a post-earnings analyst call. 

 

The bank's financial results released earlier in the day showed its treasury income totalled INR 10.81 billion in the June quarter, nearly 41% lower than the income of INR 18.16 billion a year ago. The fall in treasury income weighed on the overall income of the bank during Apr-Jun. Its total income at the end of the June quarter – at INR 372.31 billion – was at the same level as at the end of June 2025, despite a 3% rise in interest income. 

 

The bank reported a net profit of INR 52.53 billion for the June quarter, up 214% on year due to an extraordinarily low base. In Apr-Jun of the financial year 2025-26 (Apr-Mar), PNB had shifted to a lower tax regime, resulting in a one-time charge of INR 33.24 billion. Following this, its net profit for Apr-Jun last year tanked to INR 16.75 billion. Sequentially, the net profit for Apr-Jun was maintained at the same level.

 

According ot Chandra, the bank is "well on track to achieve all the guidance" it has set for FY27, including growth of 9-10% in operating profit this fiscal year. In the quarter ended June, the bank's operating profit was up 6.2% on year. As such, the bank's credit and deposit growth during the quarter were below the systemic average. Its global advances grew nearly 13% on year to INR 12.73 trillion, while global deposits rose nearly 9% on year to INR 17.25 trillion. The Reserve Bank of India's latest data showed loans of all scheduled commercial banks were up nearly 19% on year as on Jun. 30, and deposits rose over 13%.

 

Chandra said that credit growth is expected to remain strong throughout FY27, backed by a robust sanction pipeline. While the bank's credit and deposit growth during the June quarter were lower than the industry average, they were in line with its projection for FY27. The bank's management had said in April that PNB's advances were seen growing 12-13% in FY27, while deposits were seen rising 9-10%.

 

According to the chairman, PNB's credit disbursements to micro, small, and medium enterprises – which jumped 20% on year at the end of June – could rise to 25% on year by the end of FY27. While the bank does not see any impact from the war in West Asia its bank's business, a weak monsoon due to El Nino could pose a risk to multiple business verticals, he said.

 

"Last year also, we had seen that the monsoon was a little bit delayed. So, let us see that in another two months' time - August and September, how it (monsoon) happens," he said.  

 

Under the newly launched Emergency Credit Line Guarantee Scheme 5.0, PNB has disbursed loans of around INR 125 billion so far, and has sanctioned around INR 160 billion. The scheme was launched in May to extend credit support to Indian businesses amid uncertainties related to the war in West Asia. The scheme will help businesses, especially MSMEs and the airline sector, maintain their operations, protect jobs, and sustain supply chains.

 

The Delhi-based lender's net interest income for the June quarter was INR 107.98 billion, up 2.1% on year and 4% on quarter. Chandra said that the net interest income is also expected to improve in each quarter of FY27. The lender has guided for its net interest income to rise 7% in FY27 after falling 1.9% in FY26.

 

Along with that, the net interest margin is also seen improving in each quarter, Chandra said. Punjab National Bank's net interest margin was 2.5% in the June quarter, higher than the 2.47% in the trailing quarter but lower than 2.70% in the June quarter last year. The net interest margin was also slightly lower than the guidance of 2.6-2.7% for FY27.

 

Chandra also said the bank would spend around INR 30 billion – INR 40 billion on digital innovation in FY27. On Friday, shares of the bank closed at INR 105.77 on the National Stock Exchange, up 0.5% from the previous close.  End

 

Edited by Avishek Dutta

 

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