PNB Aims High: Strategizing for Rs 16,000 Crore Recovery

Punjab National Bank (PNB), the nation's second-largest state-owned banking institution, is setting an ambitious recovery target of Rs 16,000 crore for the current fiscal year, aiming to maintain slippages below 1%. The goal marks a key strategic move to sustain profitability, according to MD and CEO Ashok Chandra.

In the past fiscal year, PNB achieved a total recovery of Rs 14,336 crore, while keeping its slippages ratio at 0.73%. Moving forward, the bank plans to maximize recovery efforts, particularly through technical write-off accounts. This focus is expected to result in an additional Rs 6,000 crore recovery.

Meanwhile, PNB seeks to expand its lending in the RAM sector to 58% of its loan book, up from 56% last fiscal year. This strategic increase aims to provide a financial cushion amid interest rate cuts, complementing PNB's significant 102% profit growth in FY25.

(With inputs from agencies.)