No plan to monetise subsidiaries, focus on enhancing their value: PNB MD

Ashok Chandra, Managing Director and CEO, Punjab National Bank (PNB)

Since its capital adequacy ratio is above 18%, Punjab National Bank does not intend to sell any of its subsidiaries for now, said Managing Director and CEO Ashok Chandra, noting that the bank will concentrate on improving the performance of these units to extract more value later.

PNB’s capital adequacy rose to 18.13% by June 30, 2026, up from 17.5% at the close of Q1 of the prior fiscal year.

This comfortably exceeds the regulator’s minimum of 11.5%.

Because the bank is strongly capitalised, it does not plan to tap the market for funds to spur growth, Chandra said in a PTI interview.

He added that during the current year the bank intends to redeem ₹5,000 crore of AT‑1 and Tier‑II bonds that are nearing maturity, a move expected to save around ₹300 crore in interest expenses.

Speaking about the possible sale of subsidiaries or associates, Chandra said, “We have no such plan at present. Instead, we are bolstering all these units and aim to maximise value by strengthening them. We will reassess later, but nothing is on the agenda for this fiscal year.”

He noted that all subsidiaries, including PNB MetLife India Insurance, PNB Housing Finance and PNB Gilts, are adequately capitalised.

“Even the eight sponsored Regional Rural Banks are very strong, so I do not see any need for additional capital in any of our subsidiaries or associates at this time,” he added.

PNB sponsors the following RRBs: 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 in the current fiscal year.

The state‑owned lender recorded a net profit of ₹16,904 crore in the last financial year.

Since Q2 of the previous fiscal year, the bank has consistently posted quarterly net profits above ₹5,000 crore, he said.

“We have kept that momentum in Q1 of the ongoing fiscal year,” he continued. “I am optimistic that, with the profitable expansion underway in the industry, we will stay above the ₹5,000 crore threshold and see each quarter set a new high.”

Asked if the bank could breach the ₹20,000 crore mark in FY27 at this pace, he replied, “If we keep delivering ₹5,000 crore of net profit each quarter, that naturally leads to the figure you mentioned.”

To reach that goal, he said, the bank is rolling out large‑scale outreach initiatives every quarter.

In addition, he noted that retail, agriculture, MSME and self‑help groups will be the key sectors for building assets.

Overall, he projected loan growth of 12‑13% and deposit growth of 9‑10% for the current financial year.

Published on August 2, 2026