Punjab National Bank will focus on improving getting credit in its retail and MSME segments as it expects these sectors to drive loan growth in the current fiscal year.
First, the bank will continue to focus on diversified credit growth as huge demand is expected to come from the MSME and retail segments in FY23. the expected recovery in credit growth, interest income could also increase,” the bank said in its annual report for FY22.
The bank’s retail credit grew 6.7% year-on-year to reach 1.3 trillion rupees in Q4FY22, while MSME advances increased 1% to 1.2 trillion rupees.
The bank will also focus on improving its current account savings account (CASA) ratio for better profitability. He plans to intensify collaborations and partnerships for better results. Domestic CASA’s share improved 195 basis points year-on-year to 47.43% in Q4FY22.
Asset quality will continue to be the buzzword for us and the bank will put in place action-oriented plans to keep NPAs low so that capital remains available for business growth” , said PNB. The bank will emphasize credit monitoring through proactive measures based on various early warning signals and address stress from the outset.
As of March 31, 2022, the gross NPA ratio improved by 234 bps to 11.78% while the net NPA ratio improved by 93 bps and stood at 4.80%.
The bank plans to strengthen the PNB ONE app by offering digital loans, market features, lifestyle offers and wealth management services by revamping existing functionality.
The bank will also strive to maximize profits by increasing non-fund-based business and revenue from third-party products and streamline branches and ATMs to reduce costs.