Preventive Vigilance Vital for PNB's Progress with Strong Governance: MD Ashok Chandra

Observing the bank’s Vigilance Awareness Week, Chandra said PNB remains focused on driving qualitative, sustainable, and inclusive growth.

PNB had reported a 14 per cent jump in its net profit for the second quarter to Rs 4,903 crore year-on-year following a Rs 639 crore write-back in provisioning of non-performing assets. (Source: financialexpress)

Vigilance, especially preventive vigilance, plays a vital role in ensuring that progress remains aligned with strong governance and accountability, Ashok Chandra, MD & CEO at the public sector lender Punjab National Bank (PNB) said. Observing the bank’s Vigilance Awareness Week, Chandra said PNB remains focused on driving qualitative, sustainable, and inclusive growth.

“Guided by these values, PNB remains dedicated to supporting India’s development journey through trust and ethical excellence,” he said during an event on Monday in the presence of Central Vigilance Commissioner Praveen Kumar Srivastava.

Additionally, the bank launched initiatives including End-to-End Digitization of the Staff Accountability Portal, Conduct Risk Framework (for employees), and the Digital Solution for the PM Street Vendor’s AtmaNirbhar NIDHI (PM SVANidhi) scheme.

“The well-being of our society, the growth of our economy, and the creation of livelihoods are closely tied to the support and financing provided by banks like Punjab National Bank. The goal is to build a culture of vigilance where actions are driven not by fear of punishment, but by the commitment to do what is right,” said Praveen Kumar Srivastava, Central Vigilance Commissioner.

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Meanwhile, PNB had reported a 14 per cent jump in its net profit for the second quarter to Rs 4,903 crore year-on-year following a Rs 639 crore write-back in provisioning of non-performing assets. However, its net interest income (NII) saw a marginal decline to Rs 10,469 crore, down 0.5 per cent vis-a-vis Rs 10,517 crore in Q2 FY25. Its domestic net interest margin (NIM) dropped to 2.72 per cent from 3.06 per cent in Q2 during the previous fiscal.

Importantly, the government of India is reportedly considering another round of consolidation of public banks, as part of its efforts to create more “big banks.” Addressing the 12th SBI Banking & Economics Conclave in Mumbai last week, Finance Minister Nirmala Sitharaman had noted that India, as a fast-growing economy with diversified banking needs for its large population and thriving businesses, “needed a lot of big, world-class banks,” FE had reported.

The minister said that the government would confabulate with the Reserve Bank of India and the banks, “to see how they want to take (the plan) forward.”