95% Of Transactions Are Digital. So Why Is PNB Still Opening Hundreds Of Branches?

Punjab National Bank said more than 95% of its transactions now happen through digital channels, even as the state-run lender plans to open 250 new branches this financial year. The contrast highlights how India's banking habits are changing faster than its physical banking network.  

The lender added 144 branches in FY26 and said most of its planned expansion will focus on southern and western India. At the same time, the bank said digital transactions now account for "more than 95% of all transactions".  

The numbers point to a shift playing out across Indian banking. Customers may increasingly transfer money, pay bills and access services through apps, but banks still see value in maintaining a physical presence.

Trust Factor

PNB said its flagship PNB One mobile application now offers more than 350 features, while its WhatsApp banking users rose 77% to 1.09 crore as of March 2026.  "Digital transactions now accounting for more than 95% of all transactions," Managing Director and Chief Executive Officer Ashok Chandra said during the earnings call. 

The bank also said more than 35% of its customers are under 30 years old, reflecting growing adoption among younger users. 

Yet PNB's expansion plans suggest branches still play a role beyond daily transactions. The bank said it will continue adding locations as part of its growth strategy, particularly in regions where it wants to strengthen execution and customer outreach.

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Branch Push

"We added 144 branches in FY26 and plan to open 250 more in current financial year," Chandra said. "These branches will be primarily in the southern and western regions." 

The lender also said it is increasing outreach activities across retail, agriculture and MSME segments as it looks to expand beyond corporate lending.  

Executives described physical expansion and digital banking growth as parallel trends rather than competing ones. PNB said every third loan in the bank is now sanctioned digitally, while digital loan sanctions crossed Rs 1 lakh crore on a gross basis. 

Beyond Apps

The bank said it expects further growth in retail, MSME and agriculture lending during FY27, supported by outreach campaigns and digital platforms. 

PNB's strategy reflects a broader transition in Indian banking, where customers increasingly bank through smartphones while lenders continue investing in physical branches for visibility, trust and customer acquisition.

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