New Delhi, May 11 — Punjab National Bank (PNB) is setting a new trajectory for growth with a clear shift in strategy centered around boosting operating profit, managing director Ashok Chandra announced. Leaving behind its legacy of high non-performing assets (NPAs), the public sector lender is now focused on sustained profitability and operational excellence in the current fiscal and beyond.Record-Breaking Profit Growth in FY25
For the financial year ended March 2025, PNB recorded the highest profit growth among 12 public sector banks, with net profit surging 102 per cent to Rs 16,630 crore, a sharp jump from Rs 8,245 crore in the previous year. The bank’s total business grew by 14 per cent, reaching Rs 26.83 lakh crore — one of the highest in the Indian banking system.NPAs Significantly Reduced
Shedding its tag of having one of the highest gross and net NPAs among public sector banks, PNB has made notable progress on asset quality. Gross NPA has dropped below 4 per cent, while net NPA has slipped to just 0.5 per cent. Chandra emphasized that the bank will continue to aggressively reduce NPAs further in the ongoing financial year.Operating Profit as the New Metric of Success
“We are going to put focus on the operating profit side,” Chandra said, underlining the bank's strategic direction. “Every business activity must be driven by profitability,” he added, setting a tone of accountability across both field and corporate teams.Strengthening Retail, Agri and MSME Lending
Chandra highlighted PNB's commitment to the RAM (Retail, Agriculture, and MSME) sectors as a key driver for operating profit enhancement. Increased attention to CASA (Current Account and Savings Account) mobilization is expected to further improve the bank’s margins.Revamped CASA Products to Attract Depositors
PNB recently overhauled its entire range of CASA offerings, launching tailored schemes for various customer segments including salaried and non-salaried individuals, women, youth, senior citizens, pensioners, defence personnel, and farmers. These new products are designed with customer-centric features to drive deposit growth.In just three months, the bank has opened 2 lakh new savings accounts for salaried customers and garnered Rs 300 crore in additional deposits. Chandra revealed that the bank now aims to open 10 lakh new savings accounts within six months and attract at least Rs 2,000 crore in deposits from them.
With this aggressive growth plan and renewed focus on profitability, Punjab National Bank is positioning itself not only as the second largest in domestic business but also as a frontrunner in operating and net profit among Indian banks.