PNB profit to cross ₹20,000 cr mark in FY27: MD Chandra

Punjab National Bank MD and CEO Ashok Chandra

Buoyed by steady financial results over the past four quarters, Punjab National Bank’s Managing Director and CEO, Ashok Chandra, expressed confidence that the bank’s profit will exceed ₹20,000 crore in the current fiscal year.

The public sector lender recorded a net profit of ₹16,904 crore in the last fiscal year.

Since Q2 of the previous fiscal year, the bank has consistently posted net profits above ₹5,000 crore each quarter, Chandra said in an interview with PTI.

“We have kept this momentum in the first quarter of the current fiscal year. I am optimistic that, with profitable growth unfolding across the system, we will continue to exceed the ₹5,000‑crore mark and set new records each quarter,” he said.

“If we maintain a quarterly net profit of ₹5,000 crore, reaching the ₹20,000‑crore target in FY27 follows naturally,” he replied when asked whether the bank could surpass that figure during FY27 at the current pace.

To meet this goal, he said, the bank plans to launch large‑scale outreach initiatives each quarter.

He added that retail, agriculture, MSME, and self‑help groups will be the primary focus for building assets.

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

Chandra also noted that the bank intends to venture into acquisition finance starting in Q3 of the current fiscal year, after the RBI opened the window for lenders.

Earlier this year, the Reserve Bank issued final acquisition‑finance guidelines for banks, raising the lending ceiling to up to 75 % of the deal value, up from the 70 % proposed in the draft.

“The acquisition‑finance market is huge, with plenty of opportunities in the system. Our policy for acquisition financing has already been approved at the last board meeting,” he said.

“We are seeking a suitable partner and may begin acquisition‑finance activities from Q3 onward. Initially, we will work with domestic entities to diversify our asset portfolio,” he said.

While permitting the activity from July 1, the RBI stipulated several conditions: banks must obtain a corporate guarantee from the acquiring company and keep the post‑acquisition debt‑to‑equity ratio at or below 3:1 on an ongoing basis.

The RBI also said that any equity shares or compulsorily convertible debentures acquired must be unencumbered; the borrower should have a net worth of at least ₹500 crore and net profits for three consecutive years, with unlisted entities additionally requiring investment‑grade ratings.

Published on July 26, 2026