PNB raises $419M offshore, eyes $3B overseas haul by September
What's the deal? Punjab National BankDealroom has a profile for this one. Try Dealroom → (PNB) has raised around $419 million in Foreign Currency Non-Resident Bank (FCNR(B)) deposits, part of a $2.5 billion target it aims to hit by September 30. Executive director Amit Kumar Srivastava shared the figures with ANI after the bank posted its Q1 FY27 results.
What's the endgame? PNB is also planning to raise a further $500 million through overseas bonds, pushing its total offshore fundraising goal to $3 billion. "As far as FCNR(B) deposit is concerned, we have set a target of $2.5 billion," Srivastava said.
Why now? Srivastava said PNB is seeing strong market interest, with negotiations underway with foreign banks and customers on pricing. Dollar availability from external banks is a key factor shaping the process.
Between the lines: Despite slower initial mobilisation across India's banking system, Srivastava sees no immediate need to revise deposit rates. He expects inflows to accelerate as the deadline nears, drawing on the 2013 FCNR(B) exercise: "A lot of deposit... mainly the bulk of the deposit came in the last month itself."
The numbers: PNB reported a net profit of ₹5,253 crore for the June quarter, with gross global business up 10.2% year-on-year to nearly ₹30 lakh crore. Its gross non-performing asset ratio improved to 2.78% from 3.78% a year earlier, while net NPA fell to 0.28%.
The signal: The push reflects Indian lenders tapping non-resident deposits and offshore bonds to shore up dollar funding, echoing the large-scale FCNR(B) mobilisation seen in 2013.
Read more: NewsBytes
Image credit: Basher Eyre
