Punjab National Bank MD & CEO Ashok Chandra tells Kshipra Petkar that the bank is targeting 12–13% credit growth in FY27, with momentum building across retail, MSME and corporate segments, even as it remains watchful of geopolitical risks.
What is the broad strategy for FY27 in terms of assets and liabilities?
We have guided for 12–13% credit growth in FY27, compared with 11–12% last year. We achieved 12.7% and are confident of crossing 13% this year. Deposit growth guidance remains 9–10%. CASA is expected to be around 38%.
We are targeting 9–10% growth in operating profit and about 7% growth in net interest income (NII). NIM is expected at 2.6–2.7%. Gross NPA should fall below 2.5%, net NPA below 0.3%, with provision coverage ratio above 96%. Slippages will remain under 0.9%, recoveries above Rs 13,000 crore, and return on equity above 1%.
Given global uncertainties, what gives you confidence of achieving 13% credit growth?
If we exclude Inter-Bank Participation Certificates (IBPC), which we are consciously reducing, our growth last year was over 15%. MSME grew 20%, retail (excluding IBPC) 18.2%, agriculture 16.2%, and corporate 11.6%.
Momentum is strong. We have completed internal postings early and begun aggressive business drives. With this, 14–15% growth is achievable.
Could MSMEs see disruption in Q1 or Q2 due to geopolitical tensions?
As of now, we see no stress. Opportunities remain strong in MSME and retail. If the situation prolongs, there could be some impact from Q2 onward, but currently there is no challenge.
Are you cautious about sectors such as textiles?
We are closely engaged with exporters and importers and have conducted webinars with them. We have assured support if challenges arise. So far, accounts, including those linked to the Gulf and Middle East, are performing well.
Where are you seeing demand in the corporate book?
In FY26, corporate sanctions rose to Rs 4 lakh crore from Rs 2.01 lakh crore the previous year, with Rs 1.18 lakh crore pending disbursement. Fresh sanctions of Rs 30,000–40,000 crore have already been done in April.
Demand is coming from renewables, roads, iron and steel, commercial real estate, cement, chemicals, aviation, textiles, pharma and petroleum infrastructure.
How is the Dubai branch operating amid current conditions?
The Dubai branch team is temporarily operating from India with regulatory approval. Business continuity has not been affected.
What is the strategy for credit cards?
We have revamped the entire credit card vertical and made it fully digital. We launched a premium metal card, ‘Luxura’, targeted at affluent and HNI customers, along with platinum and signature variants. We had 6.5 lakh cards as of March 2025 and now have 9 lakh. We aim to cross 15 lakh cards by March 2027.