PNB Targets Sharper Efficiency, Aims to Cut Cost-to-Income Ratio Below 50%
What Happened
Punjab National Bank (PNB) aims to reduce its cost-to-income ratio to below 50% in the current financial year and further to around 45% by FY2028-29, according to Managing Director and CEO Ashok Chandra. The bank's cost-to-income ratio improved to 50.38% in the first half of FY27, from 53.3% a year earlier, as it focused on expense rationalisation and profitability. Chandra said the bank is closely monitoring deposit costs, loan yields, fee income and operating expenses to improve efficiency.
Key Takeaways
A lower cost-to-income ratio indicates better operating efficiency and profitability. PNB's targets suggest a continued focus on cost control and revenue growth as the bank seeks to sustain earnings momentum and strengthen its financial performance.