Asset Clean-up Bears Fruit

The country's second-largest public sector lender kept laser-sharp focus on asset quality and operational profits. This, coupled with tax savings, makes it well-placed for FY26

- BY SURABHI

"WE HAVE SET a target that operating profit should be the top agenda. Whatever we do should, in some way, contribute to the operating profit." Ashok Chandra, Managing Director and CEO, has clearly set the agenda at Punjab National Bank (PNB).

THE PERFORMANCE

PNB—the country's second-largest state-owned lender—has been building up on its profitability over the years. In FY25, standalone operating profit rose 7.6% to ₹26,831 crore, from ₹24,931 in FY24. Standalone net profit more than doubled to ₹16,630 crore in FY25, from ₹8,245 crore in FY24, and consolidated profit after tax (PAT) saw a lofty rise of 109% from ₹8,329 crore to ₹17,440 crore.

No wonder the bank is on the list of firms that have seen the highest growth in PAT among companies with one-year average m-cap of ₹10,000 crore and above and minimum profit of ₹1,000 crore in FY25. It has secured the 22nd rank in the BT500 list and is the eighth most profitable lender. Chandra attributes this to the strategy of keeping a check on nonperforming assets and improving asset quality.