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Business
PNB sets goal to cut cost‑to‑income ratio below 50% this fiscal, 45% by FY29
✍️ The Economic Times
🗓 26 Oct 2026, 06:32 AM
👁 14
Punjab National Bank announced it will bring its cost‑to‑income ratio under 50% in the current fiscal year and aims for 45% by FY2029, according to MD Chandra.
Punjab National Bank (PNB) disclosed its efficiency targets for the coming years, stating that the bank will push its cost‑to‑income (C/I) ratio below the 50% mark in the current fiscal year. The move is part of a broader strategy to improve profitability and operational efficiency.
Managing Director Chandra said the bank plans to tighten expense management, leverage digital channels and streamline processes to achieve the sub‑50% C/I ratio. He added that the bank will continue these initiatives to bring the ratio down to 45% by the financial year 2029.
The target aligns with PNB's effort to enhance its competitive position in the Indian banking sector, where cost efficiency is a key metric for investors and regulators. The bank expects the measures to bolster its earnings outlook while maintaining service quality for customers.
Analysts note that achieving a 45% cost‑to‑income ratio would place PNB among the most efficient public sector banks in India, potentially boosting its market valuation.
The bank will monitor progress quarterly and adjust its cost‑control measures as needed to stay on track with the stated timeline.
Managing Director Chandra said the bank plans to tighten expense management, leverage digital channels and streamline processes to achieve the sub‑50% C/I ratio. He added that the bank will continue these initiatives to bring the ratio down to 45% by the financial year 2029.
The target aligns with PNB's effort to enhance its competitive position in the Indian banking sector, where cost efficiency is a key metric for investors and regulators. The bank expects the measures to bolster its earnings outlook while maintaining service quality for customers.
Analysts note that achieving a 45% cost‑to‑income ratio would place PNB among the most efficient public sector banks in India, potentially boosting its market valuation.
The bank will monitor progress quarterly and adjust its cost‑control measures as needed to stay on track with the stated timeline.