PNB targets cost-to-income ratio below 50% this fiscal year, CEO says

what happened

Punjab National Bank (PNB) plans to push its cost-to-income ratio below 50% in the current financial year and to roughly 45% by 2028-29, according to CEO and managing director Ashok Chandra. In an interview with PTI, which Moody's reported, he said the ratio stood at 50.38% in the first half of the year, down from 53.3% in September 2025.

Chandra said the bank is focusing on two areas: cutting expenses and raising profits. Management reviews now cover the cost of deposits, yield on advances, fee income and ways to lower operating costs. The bank is also targeting Rs 6,000 crore in income over the next few quarters.

In the quarter ended September 2026, net profit rose 13% to Rs 5,532 crore, the highest quarterly profit in the bank's history. Treasury income fell to Rs 753 crore from Rs 1,769 crore a year earlier, but core operating profit grew about 29% year on year.

why it matters

What matters for markets is the durability of core profit: treasury losses of about Rs 1,000 crore in the quarter did not stop operating profit from growing. Investors will watch whether the bank can reach a Rs 6,000 crore quarterly profit and lower its cost-to-income ratio. The story speaks to expectations for India's banking sector rather than to any price outlook.

market impact

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