Punjab National Bank's Managing Director and CEO Ashok Chandra made a clear statement on Monday. He said the state-run lender is not considering any acquisitions right now. Instead, the bank plans to grow organically, especially in the southern states of India.
No Acquisition Plans on the Table
Chandra spoke to the media in New Delhi. He responded directly to questions about potential acquisition plans. "No decision or discussion regarding any acquisition has happened at the board level or at the government level," Chandra stated firmly. This puts to rest any speculation about the bank pursuing new takeovers in the near future.
Record Profits and Financial Performance
The bank recently reported impressive financial results. For the October to December quarter, PNB posted a record quarterly profit of Rs 5,100 crore. This represents a strong 13% increase compared to the same period last year. A lower tax payout helped boost these earnings.
Chandra expressed optimism about future performance. He expects the net interest margin to improve in the coming quarters. Both deposit growth and advances growth are tracking in line with the bank's overall targets. This contrasts with some private sector banks that have reported weak deposit growth recently.
Meeting Growth Targets
The CEO provided specific details on the bank's progress. "For credit growth, we had given a guidance of 11-12% and we are at 10.9%," Chandra explained. He confidently added that the bank will achieve its guidance for the full financial year.
Regarding deposits, the story is similar. "We had given a guidance of 9-10% deposit growth and we are at 8.9%," he noted. The bank has consciously kept deposit growth at 8.5% this quarter. This strategic decision relates to the credit-deposit ratio, which stands at 72% overall and 74% for the current quarter.
Future Strategies and Asset Quality
PNB is exploring additional funding avenues. The bank plans to tap refinance options from Sidbi. It also intends to borrow using excess statutory liquidity ratio holdings.
Asset quality shows positive trends. Chandra projected that gross non-performing assets will slide below 3% in the March quarter. This would be an improvement from just under 3.2% at the end of December.
The recovery process remains robust. The bank aims to recover nearly Rs 4,500 crore in the current quarter. This compares favorably with the Rs 4,100 crore recovered in the previous three months.
Addressing External Concerns
When asked about potential impacts from US tariffs, Chandra provided reassurance. He stated there is "no stress" on the loan book from this issue. The bank's exposure concerning export loans amounts to Rs 1,700 crore, which appears manageable.
Overall, PNB's strategy emphasizes steady, organic expansion. The focus on southern states represents a targeted approach to growth. With strong financials and clear targets, the bank appears positioned for continued stability in the coming months.
