New Delhi, July 31 -- India's state-run banks have emerged far stronger after a decade of balance-sheet clean-up and reforms, but staying nimble in an increasingly uncertain global environment will be their biggest test, Punjab National Bank (PNB) managing director and chief executive Ashok Chandra said.

Despite ongoing geopolitical tensions, including the conflict in West Asia, weighing on the global economy, PNB has not seen any stress in its loan portfolio and expects credit growth to exceed 13% in fiscal year 2027 (FY27), Chandra told Mint in an interview.

"If you look at the last 10 years, the measures adopted by banks and the guidance provided by the Government of India and the Reserve Bank of India have brought significant improv...