Punjab National Bank is recalibrating its lending strategy under MD & CEO Ashok Chandra, moving away from large, concentrated corporate loans toward the Retail, Agriculture and MSME (RAM) segment.
RAM now accounts for 56.6% of PNB's domestic advances, reflecting a deliberate shift toward smaller, granular borrowers rather than high-ticket corporate exposures.
The bank's rationale rests on three pillars: diversifying NPA risk across millions of smaller loans instead of concentrated corporate debt, capturing better yield margins on retail and MSME lending compared to corporate debt restructuring, and funding this growth through low-cost CASA deposits.
Chandra has made accelerating CASA (Current & Savings Account) deposits a top priority, aiming to lower PNB's overall cost of funds so the RAM lending push remains profitable at scale.
