PNB Targets Recoveries Worth Rs 16,000 Crore In FY26

Punjab National Bank is aiming for a CASA (Current Account and Savings Account) share of more than 38% in FY26, according to MD and CEO Ashok Chandra. 

“CASA share— we are expecting that we will be growing more than 38%. NIM (Net Interest Margin), we are expecting that it will be between 2.8% to 2.9%. Gross NPA will be below 3% and net NPA will be 0.35%,” he said during a conversation with NDTV Profit. 

In Q1FY26, PNB’s CASA share stood at 36.99%. CASA deposits increased 3.6% year-on-year to Rs 5,68,638 crore. The slippage ratio improved by 5 basis points (bps) YoY to 0.71% in Q1FY26 from 0.76% as on Q1FY25.  The domestic NIM stood at 2.84% in Q1FY26.

The bank is targeting recoveries of Rs 16,000 crore in FY26, according to the CEO.

“The recovery number should be Rs 16,000 crore. And we are already on track now. I am very much confident that Rs 16,000 crore of total recovery, we are going to do it in this financial year,” the top executive emphasised.

The public sector lender is maintaining its guidance for credit growth at 11-12% and deposit growth at 9-10%. It aims to keep the slippage ratio below 1% in FY26.

“Credit growth, we had given the guidance and we are still holding that. We will be growing at 11% to 12% in this financial year. For deposit growth, we are expecting 9% to 10%.  The slippage ratio is well under control. We are expecting that it will be below 1%,” he said. 

When asked about the potential impact of newly announced US tariffs on his borrowers, Chandra remained cautious. He said the bank was analysing its portfolio and would consult with its export clients.

“I think another three, four days, and this entire thing will be clear. And then I will be in a position to give you the correct status and correct number.”

The bank's international operations, with branches in London, Dubai and GIFT City, Gandhinagar, are also expanding. "We are getting good proposals. Even if the thin margin is there, we are taking up those proposals. We are building good books now," Chandra noted.