State-owned Punjab National Bank (PNB) and Bank of India reported robust loan growth in the first quarter of fiscal year 2027, with total credit rising 13% and 19% respectively.
The figures, released Thursday, indicate a strengthening appetite for borrowing among corporate and retail clients in India’s public sector banking system.
The strong performance at PNB and Bank of India contrasts with data from the non-banking financial company (NBFC) sector, where outstanding loans grew by just 2% year-on-year in the January-March quarter of 2026.
Punjab National Bank’s loan book expanded to Rs 12.75 lakh crore, up from the previous quarter’s level.
The acceleration in credit disbursement at these major lenders suggests that the broader Indian banking sector is gaining momentum, potentially offsetting concerns over slower growth in other financial intermediaries.
The strong performance at PNB and Bank of India contrasts with data from the non-banking financial company (NBFC) sector, where outstanding loans grew by just 2% year-on-year in the January-March quarter of 2026.
That modest expansion was driven primarily by higher credit to the private sector, according to earlier reports.