Daijiworld Media Network - New Delhi
New Delhi, May 12: : Punjab National Bank (PNB), India’s second-largest public sector lender, is charting an aggressive growth strategy across key sectors including renewable energy, defence, infrastructure, engineering, and power transmission. Backed by a robust pipeline of corporate loans worth over Rs 1.3 lakh crore, the bank is now aiming to accelerate disbursements and widen its footprint across both corporate and retail segments.
“We’re strategically concentrating on three to four critical sectors in the large corporate domain,” said Ashok Chandra, PNB’s Managing Director and CEO, in an interview with The Times of India. “We sanctioned over Rs 1.1 lakh crore in corporate loans last year, which are pending disbursal, and an additional Rs 21,000 crore was approved just in April.”
Chandra emphasized that despite minimal impact from rising tariffs, corporate loan activity remains strong. “We're eyeing a 15–16% growth in this space. Lower interest rates will fuel demand across corporate and retail lending,” he noted, adding that the bank is also intensifying its efforts in agriculture and the MSME sectors.
On the retail front, PNB plans to double its exposure to self-help groups (SHGs) to more than Rs 20,000 crore this fiscal year. Additionally, it aims to grow its education loan book—currently pegged at Rs 8,500 crore—by leveraging government-backed schemes. Home loans are another major focus, with PNB promising fast-tracked sanctions (within 48–72 hours) for RERA-approved projects. The current rate of 7.95% is expected to draw more borrowers amid a soft interest rate environment.
To optimize margins, the bank is gradually trimming its portfolio of low-yielding corporate loans. In the last quarter alone, PNB reduced such exposure by Rs 30,000–35,000 crore and intends to scale it down by another Rs 10,000–15,000 crore soon.
To support rising credit demand, PNB is also ramping up its deposit base. Recent initiatives offering benefits such as cancer and health insurance have already shown results—since April 13, the bank has opened around 1.8 lakh new accounts, mobilizing Rs 300 crore in fresh deposits. The target is to open 10 lakh such accounts in three months, potentially adding Rs 2,000–3,000 crore to its coffers over the year.