PNB raises $420M in overseas fundraising, targets $2.5B by September
What's the story
Punjab National Bank (PNB) has secured around $419 million in Foreign Currency Non-Resident Bank (FCNR(B)) deposits. The development comes as the bank works toward its target of raising $2.5 billion by September 30. The information was shared by PNB's Executive Director Amit Kumar Srivastava in an exclusive interview with ANI after the bank announced its Q1 FY27 results.
Fundraising strategy
PNB to raise another $500 million in overseas bonds
Along with the FCNR(B) deposits, Srivastava revealed that PNB is also planning to raise another $500 million through overseas bonds.
This would take the bank's overall overseas fundraising target to a whopping $3 billion.
He said, "As far as FCNR(B) deposit is concerned, we have set a target of $2.5 billion. Another... we are trying for MTM raising the bond size also overseas of half a billion."
Market response
Positive market response for FCNR(B) deposits
Srivastava said that PNB is witnessing a positive response in the market for FCNR(B) deposits with a lot of inquiries being made.
He also revealed that negotiations are underway with foreign banks and customers on pricing.
The availability of dollars from external banks is one of the key factors influencing this process, he added.
Historical parallel
Inflows expected to increase as September deadline nears
Drawing a comparison with the FCNR(B) mobilization exercise in 2013, Srivastava said inflows are likely to pick up as the September deadline approaches.
He said, "If you remember the 2013 incidents, a lot of deposit... mainly the bulk of the deposit came in the last month itself."
Despite slower initial mobilization across India's banking system, he doesn't see an immediate need to revise FCNR(B) deposit rates.
Financial health
PNB reports ₹5,253 crore net profit for June quarter
PNB recently reported a net profit of ₹5,253 crore for the June quarter. The bank's gross global business also grew by 10.2% year-on-year (YoY) to nearly ₹30 lakh crore.
Further, its gross non-performing asset (NPA) ratio improved to 2.78% from 3.78% in the previous year while net NPA declined to just 0.28%.
This shows a marked improvement in the bank's financial health and asset quality over the past year.