PNB has maintained its deposit growth outlook at 9–10% and credit growth guidance at 11–12% for the ongoing financial year. According to Chandra, the growth momentum remains intact with sustained traction in both retail and corporate segments. The bank continues to focus on strengthening its liability franchise and improving CASA mix, which forms the foundation for stable margin expansion.

Despite rising competition in the deposit market, management remains confident of sustaining low-cost funding, backed by a broad retail depositor base and strategic branch network expansion across Tier 2 and Tier 3 cities.

Ashok Chandra expressed optimism regarding credit offtake trends, particularly in the Retail, Agriculture, and MSME (RAM) segments. These areas have seen strong demand recovery in the post-pandemic environment, driven by higher consumer spending, improved liquidity, and government-backed credit schemes.

The bank’s focus on retail and MSME lending aligns with its broader strategy to diversify the loan book and reduce concentration risks from large corporate accounts. This balanced approach has not only supported earnings stability but also contributed to better asset quality trends over recent quarters.

While PNB’s current focus is on retail and MSME growth, management expects corporate loan demand to accelerate in the coming quarters. Ashok Chandra indicated that the bank is hopeful of achieving double-digit growth in its corporate book by the end of FY26, supported by strong project pipelines in infrastructure, renewable energy, and manufacturing sectors.

This expansion is expected to be backed by improving credit quality and prudent risk management, with the bank ensuring that incremental lending aligns with its risk-adjusted return thresholds.

In a related update, Chandra mentioned that PNB Housing Finance’s board is actively running the process for selection of new leadership. The announcement regarding the appointment is expected by the end of this month. This transition is viewed as part of PNB’s broader effort to strengthen group governance and align subsidiary strategies with the parent bank’s growth roadmap.

PNB Housing Finance has been showing signs of operational improvement, supported by better asset quality and focus on affordable housing finance, a key driver of credit growth in India’s urban and semi-urban regions.

Analysts tracking PNB note that the bank’s guidance reflects confidence in the underlying economy and its strong capital position. As credit growth across sectors accelerates, public sector lenders like PNB are expected to benefit from favorable interest rate spreads and lower provisioning costs.

The emphasis on RAM segment lending, coupled with steady corporate loan recovery, may help PNB sustain ROA improvement. However, the key monitorable remains deposit mobilization, given rising competition from private peers offering higher rates on term deposits.