PNB Sets Sights on Rs 16,000 Crore Recovery, Aims for Sub-1% Slippages
PNB Aims for Strong Recovery, Low Slippages in FY26
Punjab National Bank (PNB), India’s second-largest state-owned lender, is aiming for a significant Rs 16,000 crore recovery in the current fiscal year (FY26) while keeping slippages below 1 percent to maintain profitability. This ambitious target comes after a successful FY25, where the bank achieved a total recovery of Rs 14,336 crore and recorded a slippages ratio of 0.73 percent.
Prioritizing Recovery and Minimizing Fresh Slippages
PNB Managing Director and CEO Ashok Chandra highlighted that maximizing recovery and preventing fresh slippages will be the bank’s top priorities in FY26. Chandra revealed that the bank anticipates a quarterly slippage range of Rs 1,500 crore to Rs 1,700 crore.
He explained that the bank will focus on recovering from its technical write-off accounts, which stand at around Rs 91,000 crore with a provision coverage ratio exceeding 96 percent. Chandra expects Rs 6,000 crore in recovery from these accounts, setting a minimum quarterly recovery target of Rs 1,500 crore.
Expanding RAM Lending and Mitigating Rate Cut Impact
PNB plans to increase its lending to the retail, agriculture, and micro, small, and medium enterprises (RAM) sector to 58 percent of its loan book in FY26. This expansion is aimed at providing a buffer against potential losses due to further interest rate cuts in the corporate and repo-linked lending rate (RLLR) loan book.
The bank closed FY25 with Rs 6,02,682 crore in outstanding loans under the RAM segment, representing 56 percent of its loan book. Chandra believes the increased volume in the RAM segment will help compensate for any losses arising from further rate cuts.
Strong Financial Performance in FY25
PNB achieved notable financial success in FY25. It emerged as the top public sector bank in terms of profit growth, with a 102 percent increase in net profit, reaching Rs 16,630 crore. The bank also reported a 14 percent rise in total business, reaching Rs 26.83 lakh crore, one of the highest in the banking system.
