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PNB Expects Repo Rate Hike to Boost Margins and Pegs Loan Growth at 15 Percent
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CNBC TV18•19-10-2026, 13:04
PNB Expects Repo Rate Hike to Boost Margins and Pegs Loan Growth at 15 Percent
- •Punjab National Bank anticipates a seven basis point improvement in its net interest margin following the recent repo rate hike by the Reserve Bank of India.
- •Managing Director and CEO Ashok Chandra stated that the lender is comfortable maintaining a credit-deposit ratio of 78 to 80 percent.
- •The bank has revised its estimated Expected Credit Loss requirement down to ₹8,000 crore as it prepares for implementation by April 2027.
- •Core operating profit remains healthy with strong fee income growth, despite a decline in treasury earnings caused by mark-to-market losses.
Key Questions Answered
Punjab National Bank expects around a seven basis point improvement in its net interest margin (NIM) following the recent 25 basis points repo rate hike by the Reserve Bank of India.
PNB targets a comfortable credit-deposit (CD) ratio in the range of 78% to 80% while projecting a credit growth rate between 14% and 15%.
PNB is preparing to implement the Expected Credit Loss (ECL) framework starting April 1, 2027, with an estimated requirement of approximately ₹8,000 crore.
