Punjab National Bank (PNB), the country’s second-largest public sector lender, has identified more than 100 non-performing asset (NPA) accounts for sale to asset reconstruction companies (ARCs) during the current financial year in a bid to strengthen recoveries.“More than 100 accounts we have identified… the book size will be somewhere around Rs 4,000–5,000 crore. That is the outstanding book (for sale to ARCs),” PNB Managing Director and CEO Ashok Chandra told PTI.On the likely realisation from the sale, Chandra said, “We expect to recover something in the range of 40–50 per cent minimum. Through that route also, we are expecting a good recovery should happen this financial year.” He added that while some accounts may yield 100% recovery due to strong security cover, others could fetch less, making the overall expected recovery average around 40–50%.Chandra outlined that the bank has devised strategies to achieve a milestone of Rs 30 lakh crore in total business by the end of the current financial year. As of June 30, 2025, PNB’s total business rose 11.6% year-on-year to Rs 27.19 lakh crore, followed closely by Bank of Baroda at Rs 26.43 lakh crore and Canara Bank at Rs 25.64 lakh crore.“We have a target of Rs 29.56 lakh crore for the current financial year. We may do better than our target and can touch Rs 30 lakh crore by March next year, but let me add that we are very mindful that whatever the top line we are going to build, it should add profit to my bank,” Chandra said.Highlighting the focus on profitability, he noted that the bank recorded its highest-ever quarterly operating profit of Rs 7,081 crore in Q1 FY26. “Whether it is deposit mobilisation or the corporate loan book, everything should add to the bottom line of the bank. That is the reason bulk deposits have been brought down and corporate deposits curtailed to a great extent,” he explained.For FY26, PNB is targeting credit growth of 11–12% and deposit growth of 9–10%. The lender has a strong corporate loan pipeline of Rs 1.29 lakh crore in various disbursement stages. Chandra said the bank has shed low-yielding corporate advances and is focusing on loans that contribute significantly to operating profit, with corporate loan growth expected to be in double digits from Q2 onwards.PNB has also strengthened corporate lending processes, promising borrowers decisions within 15 days for proposals reaching the head office. It has created a dedicated project finance cell headed by a General Manager to push infrastructure lending.In the MSME segment, growth is currently 17–18% and is expected to continue, while retail loans in housing, vehicle, and education are projected to grow at 17%. Agriculture remains a key focus area, with self-help group lending expected to grow 30–40% this year, benefitting small and marginal farmers and contributing to priority sector lending.The bank is also prioritising food processing and rural infrastructure such as godowns and cold storage. To promote lending, it regularly holds loan outreach programmes for MSME, agriculture, and other sectors.
