The country's second-largest public sector lender, Punjab National Bank (PNB), expects its credit card and cash management services verticals to generate around Rs 200 crore each in quarterly profit from the next financial year as it steps up its focus on digital businesses to boost fee-based income.
The bank has created dedicated digital platforms for three key businesses -- credit cards, supply chain management and cash management services -- each headed by a general manager to drive growth, PNB Managing Director and CEO Ashok Chandra told PTI in an interview.
The initiatives are aimed at strengthening the bank's non-interest income amid anticipated challenges in treasury earnings and loan recoveries, he said.
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Chandra said PNB's credit card business, which started in 2008, had a base of around 6.04 lakh cards till March 2025. Following the rollout of its digital platform, the bank added another 5 lakh cards over the subsequent nine months, taking the total base to around 11 lakh.
The bank has also launched its premium PNB Metal Credit Card Luxura, which has attracted 27,140 customers so far.
PNB aims to expand its overall credit card base to more than 13 lakh, while targeting at least 30,000 premium cardholders by March 2027, he said, adding that the vertical should contribute around Rs 200 crore in profit every quarter beginning next financial year.
On the supply chain finance front, Chandra said the bank has built an end-to-end digital platform for dealer and vendor financing.
Within nine months of launching the vertical, PNB has recorded sanctions of approximately Rs 7,800 crore, with an outstanding portfolio of around Rs 5,200 crore, he said.
The third focus area is cash management services, which already contributes around Rs 130-140 crore in profit every quarter. The bank expects this vertical to achieve its Rs 200 crore quarterly profit target from the first quarter of the next financial year, he said.
"These are the three areas on which we are going to put a lot of focus. These initiatives will drive the fee-based income of the bank," Chandra said.
Besides, PNB aims to bring its cost-to-income ratio below 50 per cent in the current financial year and further reduce it to around 45 per cent by 2028-29, he said.
The bank's cost-to-income ratio stood at 50.38 per cent in the first half of the current fiscal year, down from 53.3 per cent in September 2025, as it focuses on rationalising expenses and maximising profitability.
"We are aiming to go below 50 per cent this financial year. That is the first target we have set for ourselves. In the next two years, by 2028-29, we should be somewhere around 45 per cent," he said.
Chandra said the bank is working on rationalising expenses and maximising profits while sensitising its units to the importance of improving operational efficiency.
Every review meeting now focuses on the cost of deposits, yield on advances, fee-based income and ways to cut operating expenses, he said, adding that the lender sees further scope to trim costs and improve efficiency.
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