PNB To Achieve 12% Credit Growth Guidance For FY25 Led By Loans Across Segments: CEO

Punjab National Bank is set to achieve its credit growth guidance of 12% for fiscal 2025, driven by the RAM (Retail, Agriculture, and MSME) segment, according to Chief Executive Officer and Managing Director Atul Kumar Goel.

The public sector lender reported a stellar performance in the second quarter of the current financial year, with net profit surging 145% year-on-year to Rs 4,303.5 crore, compared to Rs 1,756 crore in the year-ago period.

The bank's net interest income grew by 6% YoY, reaching Rs 10,517 crore compared to Rs 9,923 crore in the corresponding period in the preceding financial year. Its Net Non-Performing Assets fell to 0.46% YoY in the period under review.

Commenting on the results, Goel said that RAM continues to be PNB's focus area.

"As far as credit growth is concerned, we have given the guidance around 11 to 12% and we are maintaining the same guidance. Even if you see the last quarter, it was 12.8%. The focus area of the bank is the RAM. In retail, growth is more than 14% and for RAM it is about 12%," he said.

Goel, however, added that the bank is open to corporate finance if an opportunity comes up.

The top executive highlighted that Punjab National Bank's robust performance was driven by growth across segments.

"There is an all-round performance in every segment. If you see the operating profit is also increased by 10% net interest income even in the difficult time, it is more than 6% YoY,” he said.

Goel noted that the bank saw improvement in recoveries with its enhanced focus on the containment of slippages.

"Even the recovery has come from all the segments whether from the small account, even the big amount, even the account from the NCLT. The focus area of the bank is recovery. There is a containment in the slippage because if it's more, we are required to make more provision for the fresh slippage,” Goel said.

Shares of Punjab National Bank slipped over 1% intraday, to touch a low of Rs 97.52. At 11:15 a.m., the stock was seen trading 0.31% lower at Rs 98.33 per share, against 0.68% drop in the benchmark Nifty.