PNB to Sell NPAs Worth ₹5,000 Crore, Aiming for 50% Recovery: MD Chandra

Punjab National Bank (PNB) has identified over 100 non-performing asset (NPA) accounts for sale to asset reconstruction companies (ARCs) in FY26. The total book size of these accounts is estimated between ₹4,000 crore and ₹5,000 crore, as per the PTI report. The bank expects to recover around 40-50% of the outstanding amount, with recovery varying by case.

"More than 100 accounts we have identified...the book size will be somewhere around Rs 4,000-5,000 crore. That is the outstanding book (for sale to ARCs)," PNB MD and CEO Ashok Chandra Stated PTI.

PNB Total Business

At the end of the first quarter of FY26, PNB’s total business stood at ₹27.19 lakh crore, up 11.6% from the same period last year. It is the second-largest public sector lender by business size, followed by Bank of Baroda and Canara Bank. The bank reported an operating profit of ₹7,081 crore for Q1 FY26.

As per the PTI report, for the current financial year, PNB has set a total business target of ₹29.56 lakh crore. It projects credit growth of 11-12% and deposit growth of 9-10%. The corporate loan book pipeline is about ₹1.29 lakh crore, which is in various stages of disbursement.

Lending Operations and Processes

As per the reports, PNB has stated that loan proposals reaching the head office will receive a decision within 15 days. The bank has set up a dedicated project finance cell headed by a General Manager to handle large financing requirements. In recent years, it has reduced low-yielding corporate advances.

Sectoral Loan Growth

The MSME segment recorded growth of 17-18% and is expected to maintain similar levels. Core retail loans, including housing, vehicle, and education, are projected to grow around 17% this year. In agriculture, the self-help group portfolio is expected to grow by 30-40% in FY26. 

The bank is also extending credit to the food processing sector and rural infrastructure, such as storage facilities. Loan outreach events are being organised regularly for MSME and agricultural borrowers.

Read More: Key Financial Changes Taking Effect Today Aug 1: UPI Rules, PNB KYC Deadline and More!

Punjab National Bank Share Price

As of 11:15 AM on August 11, 2025, Punjab National Bank share price was trading at ₹105.58, a 1.57% increase.

Conclusion 

The NPA sale and targeted loan growth form part of PNB’s planned activities for FY26, alongside its stated business and recovery targets.

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