PNB sees credit growth rise in MSMEs in FY23

New Delhi, June 8 (KNN) The Punjab National bank (PNB) in its annual report of FY22 pointed out that the MSME and retail segment is expected to grow in credit and interest income.

The bank aims to focus on improving the credit offtake in its retail and MSME segment as it anticipates these sectors to drive the loan growth in the current financial year.

The bank’s retail credit grew 6.7 per cent year-on-year to Rs 1.3 trillion in Q4FY22 while MSME advances rose 1 per cent to Rs 1.2 trillion.

The bank will lay stress on credit monitoring through proactive steps on the basis of various early warning signals and address the stress upfront.

As per reports, PNB is also converging on improving its current account, savings account (CASA) ratio for higher profitability. It is planning to scale up collaborations and partnerships for better results.

“Asset quality will continue to be the buzzword for us and the bank will take up action-oriented plans to keep NPAs low so that capital remains available for business growth,” PNB said.

As on March 31, 2022, the gross Nonperforming Asset (NPA) ratio improved by 234 bps to 11.78 per cent while the net NPA ratio improved by 93 bps and stood at 4.80 per cent.

The bank is planning to strengthen the PNB ONE app by offering digital lending, marketplace features, lifestyle offerings and wealth management services by revamping existing features.  (KNN Bureau)