Punjab National Bank’s (PNB) quarterly profit target is ₹6,000 crore, as the lender looks to sustain earnings growth following its highest-ever quarterly net profit of ₹5,532 crore in the September 2026 quarter.
Managing Director and CEO Ashok Chandra told PTI that the bank expects its operating profit and net profit to continue growing over the coming quarters. He said sustained growth in core operating profit reflects the strength of its underlying business.
PNB reported a 13 per cent year-on-year increase in net profit for the second quarter of FY2026-27, supported by improved core income and a moderation in bad loans.
PNB targets higher profit despite treasury losses
The bank maintained operating profit growth despite treasury losses of around ₹1,000 crore during the September quarter, Chandra said.
Treasury income declined to ₹753 crore in the quarter from ₹1,769 crore in the corresponding period a year earlier.
Chandra highlighted the bank’s core operating profit, which excludes treasury gains and recoveries, as an important measure of its business performance.
Core operating profit grew around 29 per cent year-on-year in the September quarter, following growth of 32-34 per cent in the previous quarter, he said.
The bank is targeting further improvement in operating profit to support its ambition of reaching the ₹6,000 crore quarterly net profit mark.
Chandra said PNB had maintained consistency in operating profit, net profit and other key performance indicators over the past four quarters and expected the trend to continue.
Retail, MSME and agriculture loans drive growth
PNB is focusing on expanding its retail, agriculture and micro, small and medium enterprises (RAM) portfolios alongside corporate lending.
According to Chandra, the retail loan book is growing at more than 16 per cent, while advances to the MSME segment are expanding by 19-20 per cent. Agriculture lending is increasing by more than 18 per cent.
The bank expects festive-season demand to support further loan growth in the third quarter of FY2026-27.
Chandra said PNB anticipates an additional 1-2 per cent growth in its retail, agriculture, MSME and corporate loan books during the quarter.
The lender expects these segments to contribute to its overall business momentum as it pursues higher profitability.
PNB sheds low-yielding corporate advances
Corporate loan sanctions are growing at 17-18 per cent, but the growth reflected in the balance sheet is lower at around 10-11 per cent, Chandra said.
He attributed the difference to the bank’s decision to reduce some low-yielding corporate advances.
PNB plans to continue this approach during the second half of FY2026-27, focusing on the quality and returns of its lending portfolio.
The strategy comes as the bank seeks to balance loan growth with profitability. Sustained core operating profit growth, alongside expansion in retail and priority lending segments, will be important to achieving its quarterly earnings target in the coming periods.
