News | PNB Confident of Double‑Digit Corporate Loan Growth in FY26 Despite Slower Disbursements So Far

PNB Confident of Double‑Digit Corporate Loan Growth in FY26 Despite Slower Disbursements So Far

News

31 July 2025

2 min read

UBS Forums

Punjab National Bank (PNB), India’s third‑largest public sector lender, has reiterated its confidence in achieving double‑digit growth in corporate lending in fiscal year 2025–26, even though actual disbursements have lagged behind expectations in recent months.

Managing Director & CEO Ashok Chandra stated that the bank has a substantial corporate loan pipeline of ₹1.29 lakh crore, which includes ₹91,000 crore from previous sanctions still pending disbursement, and fresh approvals amounting to ₹38,000 crore in the current year. Chandra acknowledged that growth in corporate loans has not accelerated as anticipated, but expressed optimism that activity picked up in July, and forecasts strong momentum in the coming quarters as sanction pipelines convert into disbursements.

The bank’s focus is squarely on key economic sectors such as renewable energy, smart metering in power distribution, social infrastructure projects including municipal initiatives, and compressed biogas, all of which form the core of its corporate pipeline. Earlier reporting had noted PNB aims for 15–16% year‑on‑year growth in these segments, building on more than ₹1.3 lakh crore in sanctioned but undeployed credit lines targeting infrastructure, defence, road engineering and transmission sectors .

Despite the muted offtake in corporate loans—just 6.9% year‑on‑year in Q1—PNB has already achieved robust gains in medium and small enterprise borrowing (up 18.6%) and retail lending (up 11.8%), driving overall credit growth to 9.6% in that quarter .

The bank remains on track for full-year loan growth of 11–12% in FY26, consistent with guidance it issued earlier. In addition to boosting corporate credit, PNB is expanding its CASA base through revamped savings and current account products and plans to issue 10 lakh credit cards in the current fiscal year under its newly launched vertical led by a General Manager

Chandra underscored that while corporate disbursements have yet to gather pace, recent upticks indicate that larger volumes may materialize from Q2 onwards. He reiterated confidence that the bank will ultimately deliver double‑digit corporate loan advancement even as it rebalances toward retail, agriculture and MSME segments to maintain a target mix of 60:40 (RAM to corporate) by year-end.

Analysts and bank officials see PNB’s strategy as aligned with India’s broader economic thrusts—renewable energy, infrastructure and sustainable growth—which the bank is positioning itself to support via its expanding corporate credit capabilities.