Punjab National Bank (PNB) is aiming for a massive profit target. The bank’s Managing Director and CEO, Ashok Chandra, is confident that the lender will cross the Rs 20,000 crore profit mark by the end of the 2026-27 financial year (FY27). This confidence comes after the bank maintained a strong profit run of over Rs 5,000 crore every quarter for the past year. In the previous financial year, PNB earned a total net profit of Rs 16,904 crore.

To reach this new milestone, PNB is focusing on a 'profitable growth' strategy. The MD believes that by maintaining a run rate of at least Rs 5,000 crore per quarter, the bank will easily hit its annual goals. The bank has already started this year on a strong note, continuing the trend seen in the first quarter. This is good news for bank officers as it shows the bank is in a very stable financial position.

The bank plans to grow its loan book by 12% to 13% this year. To achieve this, PNB will focus on RAM sectors, which stands for Retail, Agriculture, and MSME (Micro, Small, and Medium Enterprises). They will also focus on Self-Help Groups (SHGs) for asset creation. On the other side of the balance sheet, the bank expects deposits to grow by 9% to 10% during the current financial year.

A big part of this growth plan involves 'Mega Outreach' activities. The bank will hold large-scale events every quarter to reach more customers and increase its business. For bank aspirants and staff, this means a busy schedule with a heavy focus on sales and customer relationship management at the branch and regional levels. The bank wants to ensure it is visible and accessible to all types of borrowers across India.

PNB is also entering a new business area called 'Acquisition Finance.' This is a type of loan provided to a company so it can buy another company. The Reserve Bank of India (RBI) recently allowed banks to do this with a lending limit of up to 75% of the deal value. PNB has already got its policy approved by the board and plans to start these big-ticket loans from the third quarter (October-December) of this year.

The bank will first look for domestic partners for these acquisition deals. This new line of business will help the bank diversify its asset portfolio (different types of loans the bank holds). However, there are strict rules from the RBI. For example, the borrowing company must have a net worth of at least Rs 500 crore and must have been profitable for the last three years. This ensures that the bank only lends to strong companies.

For staff on the ground, the focus will remain on the 'bread and butter' segments like Agri and MSME, while the corporate teams deal with new products like acquisition finance. The bank is clearly shifting gears to compete with top private players. The management is hopeful that these diverse strategies will keep the profit engine running at full speed.

What should we watch next? The third quarter will be crucial as PNB starts its first acquisition finance deals. Also, the success of the mega outreach programs will show if the bank can meet its 13% loan growth target. If the bank hits its Rs 20,000 crore profit goal, it will mark a significant turnaround and a new era for one of India's oldest public sector banks.