PNB CEO Ashok Chandra sees profit momentum continuing after strong Q2, eyes ₹6,000 crore quarterly profit milestone
Punjab National Bank (PNB) is targeting quarterly net profit of ₹6,000 crore over the next few quarters, Managing Director and CEO Ashok Chandra said, after the state-owned lender posted its highest-ever quarterly profit of ₹5,532 crore in the September quarter of FY27.
The bank has maintained consistency in operating profit, net profit and other key parameters over the past four quarters, and expects the trend to continue, Ashok Chandra told PTI in an interview.
PNB is focusing on further improving operating profit, which would support growth in its bottom line, he said.
For the second quarter ended September 2026, PNB reported a 13 per cent year-on-year increase in net profit to ₹5,532 crore, supported by improved core income and a moderation in bad loans.
PNB maintained growth in operating profit despite treasury losses of around ₹1,000 crore during the September quarter, Chandra said.
The bank's treasury income declined to ₹753 crore in the second quarter from ₹1,769 crore in the year-ago period.
Highlighting the performance of its core business, Chandra said core operating profit, which excludes treasury gains and recoveries, grew around 29 per cent year-on-year in the September quarter. This followed growth of 32-34 per cent in the previous quarter.
"We are already at ₹5,500 crore, and we are aiming to grow the operating profit, despite the treasury loss of around ₹1,000 crore in this particular quarter compared to September 2025," he said.
"Still, we have maintained the operating profit growth. I think just wait for a few quarters," Chandra said, responding to a question on when PNB could enter the ₹6,000 crore quarterly net profit club.
The sustained growth in core operating profit reflects the strength of the bank's underlying business and supports its confidence in maintaining profitability momentum in the coming quarters, he added.
PNB is focusing on expanding its retail, agriculture and micro, small and medium enterprises (RAM) loan portfolio, alongside corporate lending, with advances across these segments supporting overall business growth.
The bank's 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 rising by more than 18 per cent, Chandra said.
With the festive season supporting credit demand, PNB expects a further 1-2 per cent growth in its retail, agriculture, MSME and corporate loan books in the third quarter.
The expected growth across these segments could help the bank sustain its lending momentum during the second half of the current financial year.
PNB is also prioritising the quality and profitability of its corporate loan portfolio, even as loan sanctions continue to grow, Chandra said.
Corporate loan sanctions are increasing by 17-18 per cent, while the growth reflected in the balance sheet is lower, at around 10-11 per cent. This difference is partly due to the bank shedding some low-yielding corporate advances.
Chandra said PNB expects to continue this strategy in the second half of FY27.
The approach reflects the lender's focus on improving returns from its loan book while maintaining growth across retail, agriculture, MSME and corporate segments.
Get Latest real-time updates
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.