Punjab National Bank (PNB) has set ambitious targets to improve its operational efficiency, with MD and CEO Ashok Chandra announcing plans to bring the cost-to-income ratio below 50% in the current financial year and further reduce it to around 45% by 2028-29. According to reports from PTI, the bank's cost-to-income ratio stood at 50.38% in the first half of the current fiscal year, down from 53.3% in September 2025. Chandra emphasized that the bank is focusing on rationalizing expenses and maximizing profitability while sensitizing various units about operational efficiency improvements. As reported by The Economic Times, the bank is making concerted efforts to bring down the cost-to-income ratio, which had faced challenges over the years due to various factors. Chandra noted that the bank is now making concerted efforts to bring it down after facing several challenges over the years that pushed its cost-to-income ratio relatively high.
For the second quarter ended September 2026, PNB reported a 13% rise in net profit to ₹5,532 crore, marking the highest ever quarterly profit in the bank's history. As reported by PTI, the profit growth was driven by improved core income and moderation in bad loans, despite treasury losses of around ₹1,000 crore during the quarter. The bank's core operating profit demonstrated strong momentum with 29% year-on-year growth during the quarter, following similar growth rates of 32-34% in the previous quarter. According to The Economic Times, treasury income declined by ₹1,000 crore to ₹753 crore in the second quarter from ₹1,769 crore a year ago, yet the bank managed to maintain growth in operating profit despite these losses. Chandra highlighted the strong performance of the bank's core operating profit, which excludes treasury gains and recoveries, as a key indicator of its underlying business strength.
Chandra outlined that every review meeting now focuses on critical metrics including cost of deposits, yield on advances, fee-based income, and ways to reduce operating expenses. According to PTI reports, the bank sees scope for cutting costs in several areas and is working towards improving efficiency across all operations. As reported by The Economic Times, the bank is working on two key areas -- rationalisation of expenses and maximisation of profits -- while sensitising its various units about the importance of improving operational efficiency. The sustained growth in core operating profit, which excludes treasury gains and recoveries, provides confidence in the strength of the bank's key business operations and its ability to maintain profitability momentum in coming quarters.
PNB has already posted a net profit of ₹5,500 crore and is targeting further growth in operating profit, which would support increased net profit growth. As reported by PTI, the bank is targeting ₹6,000 crore in income over the next few quarters and expects to maintain consistency in operating profit, net profit, and other key parameters. According to The Economic Times, Chandra noted that the bank has maintained consistency in these parameters over the past four quarters and expects this positive trend to continue. When asked about moving into the ₹6,000 crore quarterly bottom line club, Chandra responded that the bank is already at ₹5,500 crore and aims to grow operating profit further, expecting to achieve the ₹6,000 crore target in coming quarters. He emphasized that the bank is aiming to grow the operating profit despite the treasury loss of around ₹1,000 crore in this particular quarter compared to September 2025, with the sustained growth in core operating profit giving confidence in the strength of its key business operations.
