PNB targets sub-50% cost-to-income ratio by end of FY26

Punjab National Bank (PNB) is intensifying efforts to improve operational efficiency, with a stated goal of achieving a cost-to-income ratio below 50 per cent before the end of the current financial year, said Ashok Chandra, MD and CEO of the country's second-largest public sector bank.

The bank's cost-to-income ratio stood at 50.38 per cent in the first half of FY26, a marked improvement from 53.3 per cent recorded in September 2025. Chandra outlined an ambitious two-year roadmap to further compress this metric to approximately 45 per cent by FY29.

To achieve these targets, PNB is focusing on two core operational pillars: rationalising expenses across the organisation and maximising profit generation. The bank has also prioritised sensitising various business units on the critical importance of enhancing operational efficiency at all levels.

PNB's management reviews now emphasise key performance indicators including the cost of deposits, yield on advances, and fee-based income generation. This systematic approach reflects the bank's commitment to strengthening profitability while maintaining service quality in a competitive banking landscape.