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Rate cuts may impact margins by up to 5-10 bps: PNB MD
Business Standard
|January 09, 2026
Punjab National Bank (PNB) is expecting total recovery of over ₹400 crore from Mahanagar Telephone Nigam Limited (MTNL) and ₹300-₹500 crore by selling nonperforming assets (NPA) in Q4FY26, says Ashok Chandra, managing director and chief executive officer of the bank.
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In an interview with Harsh Kumar in New Delhi, he talks about the impact of rate cuts on the bank’s margins and status of regional rural bank (RRB) IPOs. Edited excerpts:
Rate cuts affect the entire banking sector. In the near term, the impact may be around 5-10 basis points (bps). Around 65-70 per cent of our term deposits have already been repriced, with the remainder to be repriced by Q1 FY27. As repricing completes, we expect a 60-70 basis point reduction in cost of deposits, which will support margins.
Recently, one of your large accounts was declared fraudulent of over ₹2,400 crore. What is the status of that account?
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