PNB expects strong festival-driven retail and MSME loan growth

Punjab National Bank expects core retail loan growth to reach 17 to 18 percent and micro, small and medium enterprise lending to grow around 21 percent in the current quarter, supported by the festive season. Ashok Chandra, the Managing Director and Chief Executive Officer of Punjab National Bank, shared these projections in New Delhi on October 17, 2026, during an interview with ANI.

In addition to retail and MSME lending, the bank anticipates that agriculture priority-sector lending will maintain its 18 percent growth momentum in the current quarter. Chandra noted that the bank has sustained strong growth, asset quality, and profitability over the past two years, and he is fully confident that this trend will continue in upcoming quarters alongside further reductions in gross and net non-performing assets. During the first two quarters of the current financial year, the bank sanctioned corporate loans worth Rs 2.5 lakh crore, compared with Rs 4 lakh crore for the entire previous financial year. Chandra explained that the bank is replacing lower-yielding advances with higher-yielding loans to keep corporate loan-book growth around 10 to 11 percent while improving net interest income and net interest margins.

Looking ahead, Chandra stated that the recent 25-basis-point repo rate hike could positively impact the net interest margin by about 7 basis points. The bank's Asset Liability Committee will review lending and deposit rates in the coming months, while the Reserve Bank of India will determine future rate actions based on inflation and growth trends.