Business

IIE DIGITAL DESK : The strategic push to regain market share and accelerate its financial momentum, Punjab National Bank (PNB) is doubling down on both corporate and retail loan disbursements. The public sector lender is aiming to strike a balanced growth path by boosting credit flow to large businesses while continuing to build a strong pipeline of individual borrowers.

Senior executives at PNB have confirmed that the bank is witnessing encouraging demand across sectors, with an uptick in credit appetite from manufacturing, infrastructure, and MSMEs, alongside a steady rise in retail loan segments such as housing, vehicle, and personal loans. This dual-engine lending strategy is expected to be a key lever in sustaining the bank’s performance in FY25.

“Our focus is on calibrated, quality-driven growth in both corporate and retail portfolios,” a top PNB official said. “While corporate credit had remained subdued in earlier quarters due to macro uncertainties, we’re now seeing a healthy pick-up in demand, particularly from capital-intensive sectors. At the same time, the retail side continues to provide steady momentum.”

As of the latest quarterly update, PNB’s total advances stood at ₹9.82 lakh crore, marking a year-on-year growth of over 11%. Within this, the retail loan book grew nearly 14%, driven largely by strong demand for home loans and gold-backed credit. Corporate loans, which had seen a modest revival in the past year, are now expected to accelerate in the coming quarters as the investment cycle gathers pace in the post-pandemic economy.

The bank’s leadership also underscored its renewed focus on improving asset quality while chasing growth. After years of grappling with non-performing assets (NPAs) from legacy corporate exposures, PNB has managed to significantly bring down its gross NPA ratio, which now stands at 5.73%, a notable improvement from previous years. The net NPA has also been reduced to 0.96%, signaling a tighter credit appraisal framework and more rigorous monitoring of loan accounts.

“We are being extremely prudent in our corporate lending decisions. The emphasis is on well-rated clients and cash-flow visibility. On the retail side, we have enhanced digital onboarding and pre-approved loan offers to increase reach without compromising on credit checks,” the official added.

PNB has also been leveraging technology and digital banking to scale up its retail outreach. With mobile-based pre-approval systems and instant loan disbursals gaining traction, the bank is able to offer competitive turnaround times and enhance customer experience—critical in a market where private players often dominate the digital lending space.

On the corporate lending front, the bank is optimistic about opportunities in sectors like renewable energy, logistics, cement, and chemicals. Several mid-cap companies have approached PNB for term loans and working capital credit lines, supported by improving business confidence and government infrastructure push.

Industry analysts say PNB’s approach reflects a broader trend among public sector banks, which are keen to stay competitive in a rapidly evolving credit market. “With deposit growth stabilizing and interest margins holding up, PSBs like PNB are rightly focusing on deploying funds into high-yield assets. The key will be maintaining asset quality while chasing higher growth,” said S. Raghavan, a banking sector analyst with a Mumbai-based brokerage.

Going forward, PNB is expected to keep a close watch on macroeconomic indicators such as inflation trends, liquidity conditions, and RBI’s rate stance. However, the bank is confident that its diversified loan strategy, improved risk controls, and expanding digital playbook will position it well to capture credit demand in the months ahead.