Punjab National Bank Aims for ₹30 Lakh Crore Business by FY26, Plans Double-Digit Lending Growth

PNB wants to reach a total business of about ₹30 lakh crore by the end of the financial year 2025-26 (FY26) 

Punjab National Bank (PNB) has set a big goal for the coming years. The bank also aims for double-digit lending growth while keeping its bad loans under control. This goal was shared in early August in 2025 through press interactions and official market filings. It shows that PNB wants to grow strongly but also maintain the health of its balance sheet.

Punjab National Bank FY26 Goals

The main goal of PNB for FY26 is to reach ₹29.56 lakh crore in total business. Internally, the bank believes it can touch ₹30 lakh crore if everything goes well.

In the first quarter of FY26 (Q1 FY26), PNB showed steady growth. By June 2025, the bank’s total global business reached ₹27.19 lakh crore. This was 11.6 percent higher than the same period in 2024.

PNB also recorded its highest-ever quarterly operating profit of ₹7,081 crore. This strong performance gives confidence to the management that the ₹30 lakh crore goal can be achieved. The bank says this will happen if lending continues to grow profitably and risks are well managed.

Punjab National Bank NPA Recovery Plan

As part of the recovery drive, PNB aims to sell non-performing assets (NPAs) worth between ₹4,000 and ₹5,000 crore to asset reconstruction companies (ARCs). The expected recovery rate is at least 40 to 50 percent, with some secured accounts likely to return the full amount.

The first phase of their lending plan can be better understood with a look at their latest performance numbers.
 

These figures point to a bank trying to grow while making sure that expansion does not damage financial health. The next focus is on the lending mix and deposit strategy.

Asset Sale and Recovery Effort

Selling bad loans to ARCs is not just a one-time clean-up. It is part of a big plan to make the bank stronger and improve its credit score. When a loan has good security, the bank can get back more money. This extra money can increase profit and be used to give new loans.

This sale plan is part of the bank’s main business plan.
 

The recovery program is expected to support the bank’s gross NPA reduction target. The next section outlines how this links with their operational performance.

Punjab National Bank FY26 Progress

Operational efficiency remains central to the bank’s ability to reach the ₹30 lakh crore milestone. The highest-ever operating profit in Q1 has given management confidence, but market analysts are watching for consistent performance over the next three quarters.
 

If these trends hold, the bank could surpass its official ₹29.56 lakh crore target and edge closer to the ₹30 lakh crore aspiration.

The next few quarters will test the strength of PNB’s balance sheet, lending strategy, and recovery plan. Achieving the growth target while reducing NPAs to record lows will require precise execution and strong monitoring. The lender’s ability to maintain profitability while lending more will be the defining factor by March 2026.

How PNB Plans to Reach ₹30 Lakh Crore Business

To achieve its Punjab National Bank business target FY26, PNB will focus on a few main areas:

1. Steady Lending Growth: Keep credit growth in double digits, especially in MSME, retail, and agriculture sectors.
    
2. Strong Corporate Pipeline: Use the ₹1.29 lakh crore corporate loan proposals to quickly boost large-scale lending.
    
3. Better Asset Quality: Reduce gross NPA ratio below 3% by recovering bad loans and selling NPAs to ARCs.
    
4. Deposit Quality Improvement: Replace bulk corporate deposits with stable low-cost deposits from retail and small customers.
    
5. Operational Efficiency: Keep expenses in control while maintaining record-high operating profit.
    

Conclusion 

Punjab National Bank’s FY26 plan is ambitious but achievable. The target of ₹30 lakh crore in total business, double-digit credit growth, and record-low NPAs will require strong execution.

The first quarter of FY26 has given a good start with 11.6 percent business growth and record operating profit. Now the focus will be on keeping this momentum while avoiding risky lending.

If PNB can grow in a balanced way and meet its recovery targets, it will strengthen its position among Indian public sector banks and achieve its Punjab National Bank business target FY26 successfully.
 

Apply for Loans Fast and Hassle-Free

Apply Now

About the Author

LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?