Key facts
- Punjab National Bank CMD Ashok Chandra believes private sector capital expenditure is reviving.
- PNB sanctioned approximately Rs 4 lakh crore in corporate loans in FY26, a near doubling from the prior year.
- The bank anticipates corporate loan sanctions to surpass Rs 4 lakh crore in the current fiscal year.
- Chandra pointed to robust GDP growth and industrial output as evidence of increased business confidence.
- Key sectors receiving PNB's lending focus include renewable energy, iron and steel, textiles, cement, and infrastructure.
Punjab National Bank Chairman and Managing Director Ashok Chandra has indicated a significant revival in private sector capital expenditure, stating that companies are increasingly seeking loans for expansion and infrastructure projects. Chandra noted that PNB has seen a substantial increase in corporate loan sanctions, nearly doubling to Rs 4 lakh crore in the last financial year (FY26) compared to Rs 2.1 lakh crore in FY25. He expressed confidence that sanctions will exceed Rs 4 lakh crore in the current fiscal year, driven by growing faith in the economy.
Chandra pointed to strong GDP growth and high industrial output as key indicators supporting this trend. He highlighted that investment demand is broad-based, with PNB directing significant lending towards renewable energy, iron and steel, textiles, cement, and manufacturing industries. Infrastructure projects, including roads, ports, and airports, are also experiencing robust activity.
Beyond corporate lending, Chandra reported continued strength in other segments, with MSME lending growing over 20%, retail loans at 18-19%, and agriculture credit expanding at 15-16%. Despite global geopolitical uncertainties, PNB has not observed any adverse impact on its loan book, maintaining healthy demand across its business segments.