PNB targets 58% of loan book from RAM segment in FY26 to offset rate-linked margin pressure

State-owned Punjab National Bank (PNB) is aiming to broaden its lending to the RAM segment—comprising Retail, Agriculture, and MSMEs—to 58 per cent of its whole loan book in the present monetary yr, up from 56 per cent in FY25, in accordance to Managing Director and CEO Ashok Chandra.The financial institution ended FY25 with RAM segment loans standing at Rs 6,02,682 crore, accounting for 56 per cent of its whole advances. The deliberate enhance in RAM publicity, Chandra stated, will assist cushion the financial institution in opposition to margin pressure arising from fee cuts in company and repo-linked lending fee (RLLR) portfolios, in accordance to information company PTI.“We are planning to increase RAM from 56 per cent to 58 per cent in this financial year because that will give me the cushion against loss which is happening due to reduction in the interest rate in the corporate and the RLLR loan book,” Chandra informed PTI in an interview.He added that the anticipated quantity development in RAM lending will assist offset earnings loss ensuing from potential rate of interest cuts.Highlighting the financial institution’s technique, Chandra stated PNB performed nationwide outreach drives in February to increase retail and MSME lending, which yielded important outcomes.“Whatever our average monthly book was there in the entire financial year, almost 1.5 times extra has been done in March due to outreach initiatives. This activity we are going to continue during this financial year as well,” he stated.To additional strengthen MSME lending, Chandra stated the financial institution has rolled out a money flow-based digital lending facility for loans up to Rs 25 lakh.“Anybody can go to our website and apply for an MSME loan by submitting a few details. Through the account aggregator and fintech in place, we are going to give the sanction to our existing customers within 5–7 minutes,” he stated.On the retail facet, Chandra revealed that PNB is engaged on forming partnerships with housing tasks throughout the nation to streamline residence loan processing.“We are going in a massive way for approving their projects, so that once the project approval is there, and if any applicant is applying for a housing loan for that particular project, they need not go for the separate legal opinion or valuation,” he stated.This initiative, he famous, will considerably scale back turnaround time.“We can minimise the time and if anybody applies for the approved project, we are going to ensure that within 48 to 72 hours we should be in a position to give the sanction,” Chandra added.