What’s new

• Agri gold loan book doubled to ₹32,000 cr, target ₹60,000 cr by FY27-end.
• Digital budget slashed to ₹3,400 cr from ₹8,500 cr.
• One-time ECL provisioning of ₹9,500-10,000 cr due by October.

Why it matters

PNB is reallocating capital from tech to agri gold loans to meet PSL targets and become a PSLC seller. The digital cut saves costs, but the ECL provision is a near-term drag. Net profit jumped 213.6% to ₹5,253 cr, but sustainability hinges on NIM trajectory and credit quality.

What we’re watching

• ECL provision impact on Q2 profit.
• NIM sequential improvement from 2.50% Q1 level.
• Agri gold loan growth without credit risk build-up.

The full read

PNB is reshaping its loan book. Agri gold loans doubled to ₹32,000 cr and the bank aims to push them to ₹60,000 cr by FY27-end, partly to meet PSL targets and turn into a PSLC seller. At the same time, digital spending is being cut by 60% to ₹3,400 cr. The trade-off: a one-time ECL provisioning of ₹9,500-10,000 cr due in October will weigh on Q2. The bank reported a net profit of ₹5,253 cr, up 213%, with GNPA at 2.78% and slippage well under 0.9%. Management guides for sequential NIM improvement from the Q1 level of 2.50%. The story is about capital allocation, diverting resources from tech to agri loans, and whether the ECL hit is a one-off or a sign of things to come.

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