PNB Bets on Retail, Agriculture, MSME Lending and CASA Deposits to Drive Profitability
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Bank Sharpens Focus on High-Growth Business Segments
Punjab National Bank (PNB) is strengthening its focus on Retail, Agriculture, and MSME (RAM) advances, along with expanding its Current Account and Savings Account (CASA) deposit base, as part of its strategy to boost profitability and sustain long-term growth. The roadmap was outlined by Managing Director and CEO Ashok Chandra, who said the bank remains well-positioned to support India’s growing credit demand, backed by a strong balance sheet and healthy capital position.
The strategy reflects PNB’s efforts to improve earnings quality by growing high-potential lending segments while maintaining a stable source of low-cost deposits.
Retail, Agriculture and MSME to Lead Credit Growth
PNB plans to continue expanding its presence in the retail, agriculture, and MSME sectors, which have emerged as key drivers of domestic credit growth. As of March 31, 2026, the bank’s RAM advances stood at ₹6.76 lakh crore, registering a 12% year-on-year increase. These segments accounted for 56.6% of PNB’s domestic advances, highlighting their growing importance in the bank’s lending portfolio.
The bank believes that continued growth in these areas will support higher credit demand while contributing to inclusive economic development.
CASA Deposits and Digital Banking to Strengthen Margins
Alongside credit expansion, PNB is prioritising growth in CASA deposits to reduce funding costs and improve profitability. As of March 2026, the bank’s domestic CASA ratio stood at 37%, with current account deposits of ₹79,294 crore and savings deposits of ₹5.30 lakh crore.
The lender also plans to invest further in digitalisation, customer service, and human resource development to improve operational efficiency and customer experience. These initiatives are expected to support stronger customer acquisition and deepen engagement across retail and business banking.
Sustainable Growth Aligned with India’s Development Vision
PNB has reiterated its commitment to contributing to India’s ‘Viksit Bharat 2047’ vision by expanding financial access while maintaining high standards of governance and ethics. The bank also plans to integrate Environmental, Social and Governance (ESG) principles into its business strategy to promote responsible and sustainable growth.
With a balanced strategy focused on quality lending, low-cost deposits, digital transformation, and sustainability, Punjab National Bank aims to enhance profitability while reinforcing its position as one of India’s leading public sector banks.