PNB Expanding Global Presence with Dubai Representative Office

In a bid to bolster its overseas footprint, Punjab National Bank (PNB) is set to open a representative office in Dubai, as approved by its board of directors. PNB Managing Director Atul Kumar Goel confirmed the move, indicating that regulatory clearance is being sought and the office is expected to materialize within the current financial year.

Current Overseas Presence and Strategic Focus

As of March 31, 2024, PNB already had a presence in six countries through subsidiaries, joint ventures, and representative offices. The bank’s strategy for enhancing profitability revolves around expanding its retail, agriculture, and MSME portfolios, while also focusing on corporate lending, controlling slippages, and improving recovery rates.

Key Areas for Revenue Enhancement

PNB aims to boost its non-interest income by improving forex income and increasing fee income from third-party product sales. Additionally, the bank is targeting an increase in low-cost deposits, aiming to raise its CASA (Current Account Savings Account) ratio beyond 42% by the end of the fiscal year.

Financial Targets and Growth Projections

With a focus on maintaining credit costs below 1%, PNB anticipates a substantial rise in Return on Assets (ROA), expecting it to reach 0.8% during the current year and hit 1% by March 2025. The bank foresees credit growth at 11-12% and deposit growth at 9-10% for the current financial year.

Capital Raise to Support Growth

To fund its projected business growth, PNB has secured approval to raise capital amounting to Rs 17,500 crore through Tier I and Tier II bonds, as well as private placement of shares during the year.