Budget 2025 | Tax cuts and GST benefits could stimulate growth of consumer stocks: Sandeep Tandon

Budget 2025 | Tax cuts and GST benefits could stimulate growth of consumer stocks: Sandeep Tandon

Punjab National Bank (PNB) is targeting to recover bad loans worth Rs 17,000 crore in the next financial year (FY25), its chief executive officer (CEO) has said. The bank had recovered bad loans to the tune of Rs 12,000 crore in the current financial year till December.

"We are targeting to recover bad loans worth Rs 17,000 crore in FY25. We have recovered bad loans of around Rs 12,000 crore in the current financial year till December. We are also expecting slippages of around Rs 10,000 crore in the next financial year," PNB CEO Atul Kumar Goel told PTI in an interview.

The bank's gross non-performing assets (NPAs) stood at 10.4 percent of the gross advances as of December 2022, down from 13.3 percent a year ago. Net NPAs were at 3.3 percent, compared to 4.8 percent in December 2021.

Goel said the bank is aiming to bring down gross NPAs to single digit by March 2024 and net NPAs to below 2 percent.

"We are targeting to achieve a credit growth of 15-16 percent in the next financial year. We are also expecting a deposit growth of around 12 percent," he added.

The bank's capital adequacy ratio (CAR) stood at 14.2 percent as of December 2022. Goel said the bank is comfortable with the current level of CAR and does not plan to raise any fresh capital in the next financial year.

"We are expecting an improvement in net interest margin (NIM) in the next financial year. We are targeting to achieve a NIM of around 3.25 percent," he added.

The bank's NIM stood at 2.9 percent in the December quarter, up from 2.6 percent a year ago.

Goel said the bank is focusing on expanding its presence in the retail, MSME and agriculture segments.

"We are also planning to open around 100 new branches in the next financial year," he added.

The bank had a network of 10,200 branches and 13,300 ATMs across the country as of December 2022.