We will surpass credit growth target for current fiscal

Punjab National Bank is aiming at bringing down gross non-performing assets (GNPA) to below 3%, a milestone it has not achieved in years, says MD & CEO Ashok Chandra.

- Ashok Chandra, MD & CEO, Punjab National Bank

In an interview with Sachin Kumar, he outlines the bank's roadmap for the current financial year, including efforts to boost low-cost deposits through segment-specific CASA schemes and expected surge in credit growth, led by the corporate and RAM (retail, agriculture, MSME) segment. Excerpts:

What is your outlook on credit growth, and which sectors will drive this growth?

Given the RBI's accommodative stance, improved liquidity and government incentives such as tax benefits, we expect a healthy credit growth this year. We already have a strong pipeline of sanctioned loans, including ₹1.15 lakh crore approved in FY25 and an additional ₹28,000 crore sanctioned in the current fiscal for the corporate segment. In total, we have ₹1.35 lakh crore in the corporate loan book, which will be disbursed over the coming quarters. Beyond corporate lending, we are aggressively focusing on the RAM sector, where we expect a 14-15% growth. Our initial guidance was for a 11-12% credit growth. We now believe we will surpass this target by the end of the fiscal, driven by strong demand across key sectors.

What is your outlook on deposit growth in FY26.