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.
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.
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.
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!
As of 11:15 AM on August 11, 2025, Punjab National Bank share price was trading at ₹105.58, a 1.57% increase.
The NPA sale and targeted loan growth form part of PNB’s planned activities for FY26, alongside its stated business and recovery targets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 11, 2025, 12:21 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
