Q. What kind of business volumes does PNB see on RBI’s ULI? What all products have been integrated?
Ashok Chandra: PNB is one of the very early partnerships with ULI. In fact, a lot of discussions are happening and I am a very active member in the ULI committee which has been set up. We are very bullish about ULI and the opportunities it offers. The bank is undertaking a series of activities and several products are already being delivered through the platform.
Today, around 90 per cent of our digital gold loan business happens through ULI. That itself reflects the scale at which we are using the platform.
I would not like to comment on the numbers. The important point is that the bank is fully engaged with ULI and sees a significant opportunity through the platform.
Q. PNB has set a target of mobilising USD 2.5 billion in FCNR(B) deposits. What is the action plan?
Ashok Chandra: We have strengthened our NRI outreach through a 24×7 NRI Cell and a dedicated FCNR(B) Cell at the head office. We are reaching customers through digital channels and existing relationships across the Middle East. I believe we will cross our USD 2.5 billion target.
Q. Will these FCNR(B) deposits replace bulk deposits?
Ashok Chandra: Yes. Our liability and ALCO teams are working together. As bulk deposits and certificates of deposit mature, they will gradually be replaced by FCNR(B) deposits. I would not like to disclose the exact amount because that forms part of the bank’s strategy.
Q. Are UAE regulatory restrictions affecting your FCNR(B) mobilisation efforts?
Ashok Chandra: These guidelines have existed for a long time and have only been reiterated. We do not have a representative office in the UAE. Instead, we operate through our DIFC branch in Dubai and have a strong presence across the Middle East, allowing us to continue reaching NRI customers.
Q. Do you expect margins to improve from here?
Ashok Chandra: Repricing of deposits and loans was largely completed by May. NIM has already started improving and I expect another 4-5 basis points improvement in Q2. I believe NIM bottomed out in Q4.
Q. What is the status of your corporate lending pipeline?
Ashok Chandra: We have Rs 1.37 lakh crore of sanctioned corporate loans pending disbursement. We also expect corporate sanctions this year to exceed last year’s Rs 4 lakh crore.
Q. How is the ECLGS 5.0 pipeline progressing?
Ashok Chandra: Around Rs 40,000 crore of accounts are eligible. Customers have applied for around Rs 20,000 crore, we have sanctioned Rs 16,000 crore, and already disbursed about Rs 12,500 crore.
Q. What explains the pressure on CASA?
Ashok Chandra: Core CASA remains healthy. Current account growth is strong and individual savings deposits are growing well. The moderation has mainly come from lower institutional government balances.
Q. How is the credit card business progressing? Are you sticking to the previously mentioned FY27 targets?
Ashok Chandra: We increased our credit card base from 6.5 lakh in March 2025 to 9 lakh in March 2026. With digital sourcing and new premium products, we expect to cross 15 lakh cards during FY27.
Q. What is the timeline for PNB’s wealth management business?
Ashok Chandra: We are in discussions with potential partners and will soon issue the RFP. We expect the wealth management business to be operational during the latter part of Q3.
Q. What opportunities do you see under RBI’s revised co-lending framework? Which loan segments will PNB prioritise through co-lending?
Ashok Chandra: We will be partnering under the revised framework. At present, we do not have a sizeable co-lending book, but discussions with various partners are underway. Going forward, I believe the bank will derive meaningful leverage through co-lending.
Both retail and MSME loans will be our focus under co-lending.
Q. Private sector banks have begun reporting leaner workforces. How does PNB see hiring and workforce planning as AI adoption increases?
Ashok Chandra: Our workforce has remained largely stable. It is not because of AI or GenAI that we are reducing employees. Digital initiatives are aimed at improving employee productivity, branch productivity and customer onboarding.
Technology is helping us improve efficiency. We are using digital tools to augment our employees rather than replace them.
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