Punjab National Bank aims to revamp its credit card vertical and is focusing on supply chain financing to acquire new businesses and expand the credit growth. The bank targets 9-10% deposit growth and 11-12% credit growth in FY26, managing director and CEO Ashok Chandra tells Kshipra Petkar and Prasanta Sahu in an interview. Excerpts:
Credit growth is trailing deposit growth. How does PNB plan to reverse it?
We are putting a lot of focus on the RAM (retail, agri and MSME) segment. The MSME growth in the June quarter stood at 18.6% and the core retail grew at 17.7%. We are keen on improving the RAM portfolio – from around 56.5% to at least 59-60% – in the total credit. The corporate sector will account for 40%. We have a corporate loan book sanction of Rs 1.29 lakh crore. We are making sure that loan disbursement decisions are very fast.
What is your guidance on credit and deposit growth for FY26?
We have given guidance of 9-10% for deposit growth and 11-12% for credit growth.
What is the deposit mobilisation strategy, especially CASA?
We have special schemes for salaried, non-salaried, women, youth, pensioners, senior citizens and defence personnel. With all these schemes, a host of facilities is being offered like free life insurance, accident insurance, OTT subscription and medical check-up. We are getting encouraging results.
You have announced a separate credit card vertical. What’s the strategy?
We are revamping the entire credit card vertical. We are also going for digital improvement. There will be different layers of cards for HNIs, NRIs and other segments. PNB cards are not marketed properly. We have made it a point to approach corporate clients with card and other loan offers for their staff. It is one area where many banks are making a lot of profits. We have also created a cash management vertical. Vast opportunities lie in supply chain and dealer financing, and there are very few players.
What are your capital raising plans for FY26?
We are not looking for capital raising as such, as our CRAR is at 17.5% with common equity Tier I at 12.95%. Still, we have taken an approval from the board for raising Rs 8,000 crore of Tier I and Tier II capital.
Are you planning monetisation of any of the non-core assets?
We have a stake of 23% in Canara HSBC Life Insurance Company. It is likely to be listed by Q3. We are planning to offload 10%.