New Delhi: Delhi-based Punjab National Bank is sanctioning every third loan through the digital mode and on a gross basis has crossed digital sanctions of ₹1 lakh crore.
Digital now account for more than 95% of our transactions, and we aim to have a ₹2 lakh crore book in FY27 through the digital mode, PNB's managing director, Ashok Chandra, told ET.
Also Read: PNB joins hands with Kiwi to expand credit on UPI for 180 million customers
The bank on Tuesday posted a net profit of ₹5,225 crore for the fourth quarter of FY26, a 14% year-on-year (YoY) increase compared with ₹4,567 crore in the year-ago period. The net interest income during the March quarter of FY26, however, declined 3.5% YoY to ₹10,380 crore from ₹10,757 crore in Q4 FY25.
Chandra noted that there has been good growth in commissions, including bank guarantees, recovery through the technical write-off and treasury income. "These are the factors that have given a boost to the bank's profitability for the full year," he said, adding that for FY26 there is almost a 20% growth in the income from the treasury side.
The bank's scrip closed at ₹108, down by 0.68%, on the National Stock Exchange.
"We are expecting some good growth to happen in the CASA deposit and have put focus on the retail term deposit," he said, adding that the bank expects a 7% growth in net interest income for FY27.
Also Read: Moody's flags India as most resilient emerging market since 2020
Chandra said for FY27 the credit growth guidance is 12-13% and deposit guidance is 9-10%. "We will see a lot of traction happening in credit cards, cash management services and supply chain finance."
On recovery and upgradation, PNB has given guidance of ₹13,000 crore, of which ₹1,500 crore is through asset reconstruction companies, including NARCL. PNB's gross non-performing assets (NPAs) stood at 2.95% of gross advances as compared to 3.95% by the end of March 2024. Net NPAs came down to 0.29% from 0.4%. Chandra said the bank has not seen any impact on the balance sheet from the point of view of growth or asset quality due to West Asia crisis.
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Also Read: PNB joins hands with Kiwi to expand credit on UPI for 180 million customers
The bank on Tuesday posted a net profit of ₹5,225 crore for the fourth quarter of FY26, a 14% year-on-year (YoY) increase compared with ₹4,567 crore in the year-ago period. The net interest income during the March quarter of FY26, however, declined 3.5% YoY to ₹10,380 crore from ₹10,757 crore in Q4 FY25.
Chandra noted that there has been good growth in commissions, including bank guarantees, recovery through the technical write-off and treasury income. "These are the factors that have given a boost to the bank's profitability for the full year," he said, adding that for FY26 there is almost a 20% growth in the income from the treasury side.
The bank's scrip closed at ₹108, down by 0.68%, on the National Stock Exchange.
"We are expecting some good growth to happen in the CASA deposit and have put focus on the retail term deposit," he said, adding that the bank expects a 7% growth in net interest income for FY27.
Also Read: Moody's flags India as most resilient emerging market since 2020
Chandra said for FY27 the credit growth guidance is 12-13% and deposit guidance is 9-10%. "We will see a lot of traction happening in credit cards, cash management services and supply chain finance."
On recovery and upgradation, PNB has given guidance of ₹13,000 crore, of which ₹1,500 crore is through asset reconstruction companies, including NARCL. PNB's gross non-performing assets (NPAs) stood at 2.95% of gross advances as compared to 3.95% by the end of March 2024. Net NPAs came down to 0.29% from 0.4%. Chandra said the bank has not seen any impact on the balance sheet from the point of view of growth or asset quality due to West Asia crisis.
