PNB Sees Strong Credit Growth, Margins Set to Recover in FY26

• Punjab National Bank (PNB) anticipates strengthening credit growth and recovering net interest margins (NIMs) for the full financial year 2025-26 (FY26).
• Credit demand is experiencing a broad-based revival, driven by India's strong economic momentum, with GDP growth at 8.2% in Q2FY26.
• MSME loans grew over 19%, retail credit expanded more than 18% (housing, vehicle, agri), and corporate loan growth neared 9%, indicating a broad recovery.
• NIMs declined in Q3FY26 due to a 25-basis point rate cut and holding deposit rates, but PNB expects recovery in Q4FY26 after recalibrating deposit rates.
• PNB maintains its ROA guidance of over 1% for FY26, supported by strategic floating provisions of ₹10,775 crore for future ECL migration.

Why It Matters: PNB expects robust credit growth and improved margins in FY26, driven by economic revival and strategic financial management.