New Delhi [India], June 10 : Private sector investment is showing signs of revival, with companies increasingly borrowing for expansion and infrastructure projects, Punjab National Bank (PNB) Chairman and Managing Director (CMD) Ashok Chandra said, stressing that the private sector has started "reposing faith" in the economy.
In an exclusive interview with ANI, Chandra said the PNB has witnessed a sharp rise in corporate loan sanctions over the past year, indicating growing investment activity across multiple sectors.
"It has started happening. In fact, from the second half of last financial year, October onwards, we have started seeing good reaction happening in the system," Chandra said while responding to a question on whether private capital expenditure is picking up.
According to him, PNB sanctioned nearly Rs 4 lakh crore worth of corporate loans during FY26, almost double the level seen in the previous financial year.
"I will tell you the figure which was in 24-25, the total corporate loan book sanction was 2,1,000,000 crore. And it almost doubled in 25-26," he said.
The PNB chief said the momentum has continued into the current financial year, and the PNB expects corporate loan sanctions to exceed Rs 4 lakh crore.
"And the pace at which in these two months of this financial year, the things have started growing, I am very confident that it will be more than 4,00,000,000 crore of corporate loan book," he said.
Chandra said the increase in corporate borrowing suggests that private companies are once again stepping up investments after a period when much of the capital expenditure was led by the government.
"So if that is the speed at which it is happening, I think definitely the private sector has also started reposing faith in the system. And I think private capex has started happening," he said.
He also pointed to broader economic indicators, including GDP growth and industrial activity, as evidence of increasing investment and business confidence.
"If you see the growth data, the GDP data which has been declared, the industrial output almost all time high now, manufacturing sector in the industry is also a very good growth now. So all those things definitely indicate that the country is growing and a lot of activities are happening in the country now," Chandra said.
The PNB chief noted that investment demand is emerging across a wide range of sectors.
Renewable energy has been identified as one of the PNB's key focus areas, with substantial lending being directed towards the sector. Besides renewable energy, the bank has increased exposure to iron and steel, textiles, cement and other manufacturing industries.
Infrastructure-related sectors are also witnessing strong activity, according to Chandra.
"The road, a lot of projects are coming, the port, airport, infra together as a whole. So, machineries, trading also. So, almost all sectors we have taken good exposure, and we are seeing the vibration happening in the economy in almost all the sectors," he said.
Apart from corporate lending, Chandra said growth in other segments remains robust. MSME lending, which expanded by 20 per cent last year, is now growing at more than 20 per cent. Retail loans are growing at 18-19 per cent, while agriculture credit is expanding at 15-16 per cent.
He added that despite global geopolitical uncertainties, the Punjab National Bank (PNB) has not witnessed any adverse impact on its loan book so far and continues to see healthy demand across business segments.