Punjab National Bank Targets 200 Crore Quarterly Profit from Key Digital Verticals

Punjab National Bank expects its credit card and cash management services to earn around 200 crore rupees each in quarterly profit from the next financial year. The country's second-largest public sector lender is focusing on digital businesses to increase its fee-based income.

Growth Plans

Managing Director and CEO Ashok Chandra said the bank has built dedicated digital platforms for credit cards, supply chain management, and cash management services. Each unit is led by a general manager. The steps aim to strengthen non-interest income because the bank expects challenges in treasury earnings and loan recoveries. PNB started its credit card business in 2008 and had about 6.04 lakh cards until March 2025. After launching its digital platform, the bank added another 5 lakh cards in nine months, reaching a total base of nearly 11 lakh cards. The lender also launched a premium PNB Metal Credit Card Luxura, which has drawn 27,140 customers. PNB plans to grow its total card base past 13 lakh and reach at least 30,000 premium cardholders by March 2027.

Financial Targets

For supply chain finance, PNB created a digital platform for dealer and vendor financing. Within nine months, the bank recorded sanctions of about 7,800 crore rupees and an outstanding portfolio of around 5,200 crore rupees. The cash management services vertical already brings in 130 to 140 crore rupees in quarterly profit and aims to hit the 200-crore mark starting next fiscal year. Meanwhile, the bank wants to drop its cost-to-income ratio below 50 percent this financial year and down to about 45 percent by 2028-29. The ratio was 50.38 percent in the first half of the current fiscal year, dropping from 53.3 percent in September 2025.

Context

Public sector banks in India are pushing hard into digital platforms and specialized services to diversify their revenue streams beyond traditional lending. Improving the cost-to-income ratio is a standard way for large financial institutions to show they are running more efficiently and cutting unnecessary operating expenses.