Punjab National Bank Targets RAM Sector Expansion

Punjab National Bank plans to increase RAM sector lending to 58% of its loan book by enhancing retail, agriculture, and MSME sectors, aiming to cushion against interest rate reductions. Key initiatives include loan outreach and a digital lending platform. Housing project tie-ups are also in progress.

Devdiscourse News Desk | New Delhi | Updated: 12-05-2025 17:40 IST | Created: 12-05-2025 17:40 IST

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State-owned Punjab National Bank (PNB) is set to expand its focus on the RAM sector—retail, agriculture, and MSMEs—targeting a 58% share of its loan book this financial year. The move aims to mitigate losses from anticipated interest rate cuts, as explained by CEO Ashok Chandra.

Closing FY25 with RAM loans at Rs 6,02,682 crore, making up 56% of its book, PNB plans initiatives, such as nationwide loan outreach, to increase lending. In March alone, these efforts resulted in 1.5 times the average monthly loan book increase.

Additionally, PNB is investing in technology with a cash flow-based digital lending service and pursuing strategic partnerships with housing projects to streamline approval processes, thus expediting loan sanctions significantly.

(With inputs from agencies.)