Credit growth in FY26 will not be influenced, even if the deposit growth is low: PNB MD Ashok Chandra

Your net profit has fallen by almost 48.7 or about 49%, but your business profit is high at all time. How do you read these two songs?

We have migrated from the old tax regime (OTR) to the new tax regime (NTR) and therefore our DTA (deferred tax assets) must also be again calculated on the basis of the NTR. Earlier, the DTA calculation happened at 34.99 percent, which should be recalculated by 24.99 percent, so there is a difference of 10 percent between the old tax and the new tax regime and when we recalculate the tax on the DTA, that amount must be carved and calculated as a tax component. Because of that and the income tax of this year on that business profit, both have compiled the number of RS 5,083 Crore. This amount was delivered as a tax in the quarter of June. Every bank that migrates from the old tax regime to the new tax regime must do this in a quarter itself. This is a one-off exercise and from this quarter, if we register the same business profit, our net profit will be in the same reach or £ 5,000-crore plus

What are the reasons for your high commercial profit of all time?

One is the Treasury book, which we built up in January-Februari-March when we saw that the interest rate had begun to fall in the financial year 2025-26. We currently have a good treasure chest book from RS 5 Lakh Crore. With the interest rates that fall, our old investments will give us income on the treasury side. We have also realized good recovery of technical depreciation and the general recovery. With the increase in progress, we have also made good income about processing costs. These are the few components that have added value for the business profit.

Slippage in the MSME segment has risen by 51.4 percent, what are the reasons for that?

Last year, during the first quarter, our MSME Fresh Slippage was £ 638 crore and this year it is £ 966 Crore. If you also see Q4 (FY25), slippage was around £ 995 crore. We have analyzed these slips and discovered that 80 percent of those loans are lower than £ 10 lakh, which is Mudra species of loans. We have now initiated changes in the processes. We initially brought the end-to-end digital process for loans up to £ 10 lakh, which has now been increased to £ 25 lakhs. We will make the end-to-end digital process mandatory for Mudra loans. And in another two months, MSME loans of up to £ 25 Lakh will only be done via the digital channel.

Guidelines Pepert credit growth at 11-12 percent for the entire tax, compared to around 10 percent in the first quarter, but the deposit growth is projected at 9-10 percent for the entire tax, compared to around 13 percent in the first quarter. Does this not affect your credit projection?

We have given low guidance because our CD -Ratio is 71.24 percent, which means that we have enough room with the existing deposit to be handled for credit growth. Absolutely, there is no challenge, because if you take CRR (3 percent) and SLR (18 percent) together, 21 percent are blocked, which means that you have a kitty of 79 percent available for loans. We have only reached 71 percent of this 79 percent. Although the deposit guidance is 9-10 percent, we grew by 12.86 percent in this quarter. We had said earlier that we would surpass the conservative guidance we have established.

You have removed the fine for the non-maintenance of at least balance when saving accounts, which implies a hundred crores in the book. How are you going to repair this amount?

We have a growth curve that will accelerate in the individual segment of the SB. We have renewed our entire Casa product and accordingly all SB products were renewed on 12 April 2025. We have built a good SB -individual portfolio in this quarter -26 Lakh good quality accounts are open and accretion in the SB person is £ 4,600 crore. The Casa ratio drops the system as institutional deposits. This is not only at our bank, but for the entire banking system. The CNA and SNA account, which the Government of India or the States used, now goes directly to the RBI and from there to the bank branches for direct payments or payment of the director now. But because we are growing in the individual SB segment, and therefore Casa we get those funds at 2.5 to 2.7 percent. This causes the loss due to the minimum balance costs that are being abolished.