PNB to Enter Acquisition Finance Business

Punjab National Bank (PNB), led by its CEO Ashok Chandra, is planning to enter the acquisition finance business starting in the third quarter of this year.

The Reserve Bank of India (RBI) has recently opened this opportunity for banks, allowing them to lend up to 75% of the deal value.

PNB aims to start with domestic entities to diversify its asset portfolio.

The RBI has set certain conditions for this financing, including corporate guarantees and maintaining a debt-to-equity ratio of no more than 3:1.

Additionally, PNB has been mobilizing foreign currency deposits, aiming to collect up to USD 2.5 billion by September 30.

The bank recently reported a significant jump in net profit for the first quarter of 2026, driven by a reduction in tax payments.