Punjab National Bank (archive photo)
NEW DELHI: State-run Punjab National Bank, the second-largest public sector lender, is targeting to wipe out as much as $2.5 billion of non-resident banks’ foreign currency deposits and has secured $425 million so far.“We are receiving huge interest from the UK, Dubai and GIFT City. The demand is very good,” PNB Managing Director Ashok Chandra told TOI. The scheme aims to attract foreign funds, supported by incentives.Having reported a three-fold jump in first-quarter profits, Chandra is hopeful that the momentum will continue as deposit and credit growth remains on track, as he closely monitors the monsoon, which has so far had no impact on the bank.“So far, there is no visible stress (in our books). If the monsoon does not pick up in the next couple of months, there may be some impact in the longer term. Agriculture remains the mainstay for a large number of people; hence some signs of stress may start showing in the third quarter (October-December).” He added that the state-owned bank is witnessing sustained demand in its strongholds in north and northwest India, even though the exchange cycle is witnessing a noticeable shift from June to July, as the monsoon season is delayed year on year.
Government data showed that sowing of kharif crops such as rice, pulses, oilseeds and cotton fell by 16% to 53.1 million hectares as of July 10 due to lack of rain. Moreover, the bank is pushing towards digital transformation as every second loan is disbursed through online channels. The bank is also looking to make forays into southern states.