Budget 2026 may prioritise MSME, infra, rural growth for economic boost: PNB MD

New Delhi: Positive signals are coming from the banking sector regarding the Union Budget 2026. Punjab National Bank MD and CEO Ashok Chandra believes that the government will give priority to development in the upcoming Budget. According to Chandra, special attention can be paid to infrastructure MSME and rural development in the budget. In the last few years there has been continuity in the policies of the government. This continuity is expected to continue. The focus of the budget can be on strengthening economic growth and promoting investment.

PNB MD said in the Budget 2026-27, the government can pursue the same priorities. Increasing investment in infrastructure and rural areas will strengthen the economy. This can create new employment opportunities. The government's goal may be to speed up growth.

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In the budget, there is hope of big announcements regarding the MSME sector. According to the PNB MD, by increasing the expenditure on MSMEs and rural infrastructure, new entrepreneurs will get a chance to come forward. Demand in rural areas will increase. This will increase the flow of capital in the market. The banking sector can also benefit directly from this.

Chandra believes that capital expenditure will remain the priority of the government. Capex growth will strengthen road power and other infrastructure. This will also encourage private investment. Infrastructure projects will create employment. In the long run, this will stabilize economic growth.

The latest results of PNB strengthen confidence in the budget. The bank's MSME retail and agricultural loans are increasing steadily. MSME loans have increased by more than 19 percent. Retail housing and vehicle loans have also seen sharp growth. This shows that there is demand at the grassroots level.

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NPA: PNB’s massive recovery

PNB has made a massive recovery in the current financial year. The bank's target is to recover sixteen thousand crores, out of which a large amount has already been achieved. Slippage has been kept below one percent. This has improved the gross and net NPA. According to the MD, this strong base will be further strengthened by the upcoming budget.