• Credit growth: PNB reported growth above 20% in MSME, above 18% in agri priority sector, above 16% in retail and above 10% in corporate for the last 3 quarters. It expects 1 to 2% more growth in these segments in Q3 and said it had sanctioned more than ₹2.5 lakh crore of corporate loans in 6 months, with around ₹5 lakh crore expected for the financial year.
• Funding and margins: The bank is guiding for deposit growth of 9 to 10% and credit growth of 11 to 12%; with its CD ratio around 75%, management sees room to reach 77-78%. Domestic NIM improved by 10 basis points and global NIM by 8 basis points in the quarter.
• Asset quality: Management reported SMA 0, 1, 2 at 2.5%, GNPA at 2.55% and net NPA at 0.25%, and said it sees no current stress. It expects credit cost to remain at 0.25 to 0.30%, citing improved underwriting.
• ECL and rates: Of the roughly ₹8,000 crore ECL requirement, PNB has set aside ₹2,560 crore as floating provision and added ₹1,150 crore in standard-asset provisions this quarter; management expects no impact on capital or profitability. With 56% of assets linked to the repo rate, it expects around 7 basis points of NIM improvement from the repo hike and will consider deposit repricing at its month-end ALCO meeting.
• FCNR funding: PNB mobilized 2.7 billion USD against a commitment of 2.5 billion USD and used the funds to reduce bulk deposits and CDs; CDs were ₹28,000-₹23,000 crore below the March figure. Management described the exercise as calibrated and expects FCNR deposit rates and NIM to improve.