The Managing Director and CEO of Punjab National Bank, Ashok Chandra, stated that since the bank possesses sufficient capital, it does not plan to raise funds from the market to stimulate growth.
According to Chandra, Punjab National Bank has no immediate intention of selling its subsidiaries, given that the bank's capital adequacy ratio exceeds 18 percent. Instead, the creditor will focus on strengthening the operations of these entities to unlock greater value in the future.
PNB's capital improved to 18.13 percent as of June 30, 2026, compared to 17.5 percent at the end of the first quarter of the previous fiscal year. This figure is significantly higher than the 11.5 percent requirement set by regulatory bodies.
Chandra also noted that this year the bank will repay AT 1 and Tier II bonds amounting to 5,000 crore rupees that are approaching maturity. This will save 300 crore rupees, as interest payments will no longer be required on these securities.
Regarding the monetization of subsidiaries or affiliates, Chandra emphasized: 'We do not have such plans right now. In fact, we are strengthening all these subsidiaries, and our goal is value maximization through their enhancement. We will see how things turn out in the future, but nothing is planned for this fiscal year.' He added that all subsidiaries, including PNB MetLife India Insurance, PNB Housing Finance, and PNB Gilts, are also well-capitalized.
He also stated that eight sponsored Regional Rural Banks (RRBs) are very strong, and in his opinion, none of the subsidiaries or affiliates currently require additional capital.
PNB sponsors Assam Gramin Bank, Bihar Gramin Bank, Himachal Pradesh Gramin Bank, Punjab Gramin Bank, Haryana Gramin Bank, Manipur Rural Bank, Tripura Gramin Bank, and West Bengal Gramin Bank.
Chandra expressed confidence that the bank's profit will exceed 20,000 crore rupees in the current fiscal year. In the previous fiscal year, the public sector lender earned a net profit of 16,904 crore rupees. Since the second quarter of the last fiscal year, the bank has consistently shown a net profit of more than 5,000 crore rupees quarterly.
He noted that this trend continues in the first quarter of the current fiscal year. Chandra expressed hope and confidence that due to profitable growth in the system, the bank will be able to exceed the 5,000 crore rupee mark every quarter, reaching new heights.
Responding to the question of achieving the target of 20,000 crore rupees during the financial year 27 at the current pace, he suggested that if a net profit of 5,000 crore rupees is recorded quarterly, it will lead to the stated amount.
To achieve this goal, the bank is focusing heavily on conducting large-scale outreach programs every quarter. Furthermore, the main areas for asset creation will be the retail sector, agriculture, MSMEs, and self-help groups. Overall, lending growth is expected to be 12–13 percent, and deposit growth 9–10 percent during the current fiscal year.
