Archive · 19 Jul 2026
PNB Aims to Retire High-Cost Deposits
Punjab National Bank (PNB) is planning to retire high-cost deposits by using funds from FCNR(B) deposits.
The bank aims to collect between $2 billion and $2.5 billion in FCNR(B) deposits, leveraging its strong NRI customer base and various outreach programs.
PNB offers a leverage of 9x to customers, which it believes is sufficient to provide good returns.
The bank has also improved its asset quality and is planning to launch wealth management services by the third quarter of the current financial year.
PNB has a significant young customer base, with 57% of its customers below 40 years of age, and is introducing digital products to cater to this demographic.
PNB aims to retire high-cost deposits using FCNR(B) deposits.
The bank targets $2 billion to $2.5 billion in FCNR(B) deposits.
PNB offers a leverage of 9x to customers for FCNR(B) deposits.
The bank has improved its asset quality with low NPA rates.
PNB plans to launch wealth management services by the third quarter.
- Who
- Punjab National Bank (PNB) and its MD & CEO Ashok Chandra
- What
- PNB's plans to retire high-cost deposits and grow FCNR(B) deposits
- When
- Current financial year
- Where
- India
- Why
- To improve liquidity, retire high-cost deposits, and attract NRI customers
Aggressive Growth Strategy
Cautious Approach
FCNR(B) Deposit Target
Aggressive Growth Strategy
PNB is confident in achieving its ambitious target of $2 billion to $2.5 billion in FCNR(B) deposits due to strong NRI interest and effective outreach programs.
Cautious Approach
Some may view the target as too ambitious given the current collection of $425 million and the slow pace of accumulation.
Leverage Offered to Customers
Aggressive Growth Strategy
PNB offers a leverage of 9x and believes this is sufficient to attract customers and provide good returns.
Cautious Approach
Other banks are offering higher leverage, which could make PNB's offering less competitive.
- FCNR(B) Deposit Target
- $2 billion to $2.5 billion
- Current FCNR(B) Deposits Collected
- $425 million
- Leverage Offered
- 9x
- NRI Customer Base
- Strong and growing interest
- Wealth Management Services Launch
- Third quarter of the current financial year
- Non-Performing Assets (NPA)
- Rs 5,486 crore (0.42% of disbursed amount under fresh underwriting)
- Young Customer Base
- 57% below 40 years of age