From mint · Harsh Kumar · · 1m 10s
PNB CEO: 15% credit growth target, strong capital buffer
PNB CEO Chandra says bank targets 15% credit growth this year with comfortable capital buffer.
In brief
PNB CEO Chandra says bank targets 15% credit growth this year with comfortable capital buffer. Punjab National Bank aims for 15% credit growth this fiscal year while maintaining a strong capital buffer. Originally reported by mint.
PNB capital buffer
Punjab National Bank has a comfortable capital buffer and no plans to raise capital this fiscal year.
“The state-owned bank has no plan to raise capital in the current financial year.”
Credit growth targets
PNB targets 15% credit growth this year with corporate loans at 10-11%.
“The second-largest public sector bank is targeting credit growth of about 15% while moderating corporate loan growth to 10-11%.”
Net interest margin
PNB's net interest margin improved 10 basis points to 2.74% in Q3, supported by recent repo rate hikes.
“Its domestic NIM rose 10 bps to 2.74% in the September quarter.”
Core profit growth
Core operating profit grew 29% year-on-year in Q3, following 32-33% growth in Q2.
“Core operating profit, excluding treasury and recovery, grew 29% year-on-year in the September quarter, following growth of 32-33% in the previous quarter.”
Retail and MSME growth
Retail lending to grow 18%, agriculture credit 18-19%, and MSME lending 21-22% this year.
“For PNB, retail, agriculture and micro, small and medium enterprises (MSMEs) will remain the principal growth drivers.”
Deposit mobilization
PNB targets 9-10% deposit growth, with $2.7 billion foreign deposits deployed to improve margins.
“The bank is targeting deposit growth of 9-10%, against 9.9% currently, and plans to launch a millennial recurring deposit scheme shortly.”
Asset recovery targets
PNB aims to recover ₹13,000 crore for the full year, with ₹2,800 crore in Q3.
“On asset recoveries, the bank is targeting ₹ 13,000 crore for the full financial year.”
What to remember
Punjab National Bank aims for 15% credit growth this fiscal year while maintaining a strong capital buffer.
