Punjab National Bank (PNB) has said it will not aggressively pursue deposit mobilisation despite loan growth continuing to outpace deposit growth. The state-owned lender believes its current credit-deposit (CD) ratio provides sufficient room to support future lending without creating funding pressure. Speaking after the bank announced its financial results for the first quarter of FY2026-27, Managing Director and Chief Executive Officer Ashok Chandra said PNB remains well-positioned to sustain credit expansion while maintaining financial stability.
During the April-June quarter, PNB recorded credit growth of 12.7 per cent, compared with deposit growth of 8.5 per cent. Despite the difference, the bank’s CD ratio stood at around 73 per cent, leaving adequate headroom for further lending. According to Chandra, the ratio can comfortably increase by another three to four percentage points while deposit growth continues at its current pace.
He further stated that once the CD ratio reaches that level, the bank will focus on accelerating deposit mobilisation, targeting deposit growth of around 10 per cent. The strategy reflects PNB’s confidence in its funding position while ensuring that future lending remains sustainable. By balancing credit expansion with a gradual increase in deposits, the bank aims to maintain healthy margins, strengthen liquidity, and support long-term business growth without resorting to an aggressive deposit acquisition strategy.
