New Delhi [India], July 18 : Punjab National Bank (PNB) has mobilised around USD 419 million in Foreign Currency Non-Resident Bank (FCNR(B)) deposits and remains on track to achieve its USD 2.5 billion target by September 30, despite higher global yields and ongoing negotiations over deposit rates, Executive Director Amit Kumar Srivastava told ANI.
Speaking exclusively to ANI after the bank announced its first-quarter FY27 earnings, Srivastava said PNB is also planning to raise another USD 500 million through overseas bonds, taking its overall overseas fundraising target to USD 3 billion.
"As far as FCNR(B) deposit is concerned, we have set a target of USD 2.5 billion. Another... we are trying for MTM raising the bond size also overseas of half a billion. So, to put the total to USD 3 billion, basically, we are targeting up to 30th September," he said.
Giving an update on mobilisation, he said, "Against that, so far, we have raised USD 419 million as far as the FCNR deposit is concerned. And we are seeing a good traction in the market. A lot of inquiries are taking place."
Srivastava said negotiations are underway with overseas banks as well as customers on pricing, adding that dollar availability remains one of the key factors influencing the mobilisation process.
"We have to basically take the dollar from the outside banks also. So, they are also negotiating on the rates... The same goes with the customers also... A lot of negotiations are taking place," he said.
Drawing parallels with the FCNR(B) mobilisation exercise undertaken in 2013, he said inflows are expected to gather pace closer to the September deadline.
"If you remember the 2013 incidents, a lot of deposit... mainly the bulk of the deposit came in the last month itself. So, it will slowly and slowly pick up, and majority of it will mature in September itself," he said.
Despite slower initial mobilisation across the banking system, Srivastava said the bank does not see any immediate need to revise FCNR(B) deposit rates.
"We have started good and we have so far USD 419 million... We are on the track to achieve the target. I do not think there is any requirement as far as the present situation is concerned, to revise the rates," he said.
PNB on Saturday reported a net profit of Rs 5,253 crore for the June quarter, while gross global business rose 10.2 per cent year-on-year to nearly Rs 30 lakh crore. The bank's gross non-performing asset ratio improved to 2.78 per cent from 3.78 per cent a year earlier, while net NPA declined to 0.28 per cent.