# PNB Targets ₹6,000 Crore Quarterly Profit Milestone After Record Q2 Performance CEO Ashok Chandra eyes sustained momentum through core operating profit and strategic loan portfolio expansion. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-18 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/a06a2c2d-01df-49db-b8a5-c5f4b46b64ac ## Record Quarterly Profit Achieved Punjab National Bank reported a record net profit of ₹5,532 crore for the September quarter of FY27. This represents a 13 percent year-on-year increase, driven by improved core income and reduced bad loans. CEO Ashok Chandra confirmed the bank is now targeting a quarterly milestone of ₹6,000 crore in the near future. ## Resilience Amid Treasury Losses The bank maintained consistent operating profit growth despite facing significant treasury losses of approximately ₹1,000 crore during the second quarter. Treasury income dropped to ₹753 crore from ₹1,769 crore in the previous year. Management successfully offset these market-related headwinds by focusing on the underlying strength of the bank's core operational business activities. ## Core Operating Profit Surge Core operating profit, which excludes treasury gains and recoveries, grew by approximately 29 percent year-on-year during the September quarter. This performance follows a strong trend from the previous quarter, where growth reached 32 to 34 percent. Such consistent expansion highlights the bank's ability to generate revenue from its primary lending operations. ## RAM Portfolio Growth Strategy PNB is aggressively expanding its retail, agriculture, and MSME loan segments to drive business growth. Retail loans are currently growing at over 16 percent, while MSME advances are expanding by 19 to 20 percent. Additionally, agriculture lending has seen an increase of more than 18 percent, supporting the bank's overall financial momentum. ## Corporate Lending Portfolio Shift While corporate loan sanctions are rising by 17 to 18 percent, balance sheet growth remains at 10 to 11 percent. This discrepancy arises because the bank is intentionally shedding low-yielding corporate advances. CEO Ashok Chandra confirmed this strategy will continue through the second half of FY27 to improve overall loan book profitability. ## Festive Season Credit Demand The bank anticipates further growth of 1 to 2 percent across its retail, agriculture, MSME, and corporate loan books during the third quarter. This projection is supported by increased credit demand during the festive season. Such sustained lending activity is expected to bolster the bank's performance throughout the second half of the year. ## Focus on Asset Quality Beyond volume growth, PNB is prioritizing the quality and profitability of its corporate loan portfolio. By balancing new sanctions with the removal of lower-margin assets, the bank aims to optimize its returns. This disciplined approach to credit management is central to the CEO's plan for achieving the targeted ₹6,000 crore profit milestone. ## Sustained Profitability Outlook The bank remains confident in its ability to maintain profitability momentum based on the strength of its core business. By successfully navigating treasury volatility and focusing on high-growth segments, PNB has established a stable trajectory. Investors and analysts are now watching for the next few quarters to confirm this upward financial trend. ## Sources covering this story - https://www.livemint.com/companies/news/pnb-ceo-ashok-chandra-sees-profit-momentum-continuing-after-strong-q2-eyes-6-000-crore-quarterly-profit-milestone-11792328382796.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._