PNB CEO Foresees Infrastructural Focus in 2026 Union Budget

Punjab National Bank's CEO anticipates the 2026 Union Budget to prioritize infrastructure development, MSMEs, and rural growth. The bank's robust quarterly profits are attributed to targeted lending and effective recoveries. Challenges include interest rate cuts and thin corporate lending margins, though recovery and new credit products show promise.

As India anticipates the 2026 Union Budget, Punjab National Bank Managing Director and CEO Ashok Chandra expects a continued focus on infrastructure development, micro, small, and medium enterprises (MSMEs), and rural growth. Speaking to ANI, Chandra highlighted the government's consistent prioritization of these sectors in recent budgets.

Chandra emphasized that MSMEs, rural infrastructure, and capital expenditure have been pivotal areas that foster entrepreneurship and attract market capital. Discussing the bank's highest-ever quarterly profits, he credited the focus on core segments such as MSME, retail, and agriculture lending, citing significant growth rates across these categories.

Despite the challenges posed by a 125 basis point repo rate cut, which impacted profitability, PNB has made strides through strong recoveries and new vertical initiatives. The introduction of Luxura credit cards and enhanced cash management services, coupled with effective slippage management, has helped improve the bank's financial health amidst evolving economic conditions.

(With inputs from agencies.)