PNB Aims for Rs 6,000 Crore Quarterly Profit, Says CEO

Punjab National Bank (PNB) has set an ambitious target of achieving a quarterly net profit of Rs 6,000 crore in the upcoming quarters. This announcement follows the bank's record profit of Rs 5,532 crore for the September quarter of FY27, as stated by Managing Director and CEO Ashok Chandra in a recent interview with PTI.

The bank's performance in the second quarter reflects a 13% increase in net profit compared to the same period last year, driven by enhanced core income and a reduction in non-performing loans. Chandra emphasized that PNB has consistently demonstrated growth in key financial metrics over the past four quarters and is optimistic about sustaining this momentum.

Despite facing a treasury loss of approximately Rs 1,000 crore in the latest quarter, PNB has maintained its operating profit growth. Chandra noted that the core operating profit, which excludes treasury gains, rose by around 29% year-on-year, indicating the strength of the bank's fundamental operations. This growth follows a robust increase of 32-34% in the previous quarter.

Looking ahead, PNB is focusing on expanding its loan portfolio, particularly in retail, agriculture, and micro, small, and medium enterprises (MSMEs), alongside corporate lending. Chandra reported that the retail loan segment is experiencing growth of over 16%, while MSME advances are increasing by 19-20%. Agricultural lending has also seen a rise of more than 18%. With the festive season approaching, the bank anticipates an additional 1-2% growth in its loan books across these sectors in the December quarter.

In the corporate lending space, while sanctions are growing at 17-18%, the growth reflected in the balance sheet is lower at around 10-11%. Chandra attributed this discrepancy to the bank's strategy of reducing low-yielding corporate advances, a tactic PNB plans to continue in the latter half of FY27.