Shares of Punjab National Bank ended at ₹111.00, down by ₹0.65, or 0.58%, on the BSE. 3 Min Read
State-owned Punjab National Bank (PNB) on Wednesday (July 29) said its board has approved raising foreign currency funds through the establishment of a Medium-Term Note (MTN) programme of up to $1.5 billion. The bank said bonds under the programme will be issued through PNB’s International Financial Services Centre (IFSC) Banking Unit at GIFT City. In July this year, Punjab National Bank MD and CEO Ashok Chandra exuded confidence that the bank’s profit would surpass the ₹20,000 crore mark this financial year. The public sector lender had earned a net profit of ₹16,904 crore in the previous financial year. From the second quarter of last financial year, the bank has been maintaining a net profit of over ₹5,000 crore every quarter, Chandra said. ALSO READ | PNB Q1 Results: Lower taxes aid profitability, margins compress but slippages fall
“We have maintained the same trend in the first quarter (ongoing financial year).
And I am hopeful and confident that with the profitable growth, which is happening in the system….we will be surpassing the ₹5,000 crore number and every quarter will be reaching a new height,” he said. Asked if the bank can cross the ₹20,000 crore mark during FY27 at this run rate, he said, “If I am telling that every quarter ₹5,000 crore of net profit will happen, I think that goes to that figure which you are talking about”. To achieve the target, he said, the bank is focusing heavily on conducting mega outreach activities every quarter on a very large scale.
Besides, he said, retail, agri, MSME, and self-help groups are going to be the focus areas for asset creation. Overall, loan growth will be 12-13% while deposits would be growing at 9-10% during the ongoing financial year, he added. Chandra also said the bank would enter into acquisition finance in the third quarter of the current financial year as the RBI recently opened the window for lenders. ALSO READ | PNB says June quarter marked the low point, expects improvement ahead
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Earlier this year, the Reserve Bank came out with final guidelines on acquisition finance by banks, increasing the lending limit to up to 75% of the deal value from the 70% proposed in the draft rules. “The acquisition finance market is a very, very big market and ample opportunities are there in the system. We have got our policy approved for the acquisition financing in the last board meeting,” he said. “We are looking for a good partner and then maybe from Q3 onwards, we will be initiating some work in the acquisition financing.” To begin with, he said, the bank would be starting acquisition finance with domestic entities, and this will help the bank to diversify its asset portfolio.
ALSO READ | Punjab National Bank Q1 Update: Global Business rises 10.32%, advances up 13%
Shares of Punjab National Bank ended at ₹111.00, down by ₹0.65, or 0.58%, on the BSE. Home Market News Stocks News Punjab National Bank gets nod to raise $1.5 billion through foreign currency bond programme
