Punjab National Bank’s Plans and financial targets Revealed

1. Fund Raise Plan:

   • Punjab National Bank (PNB) has planned to raise Rs 7,500 crore ($898 million) through equity capital.
   • This decision was approved by the bank’s board in December.

2. Share Sale Timeline:

   • PNB aims to close the share sale to large institutional investors within the next six months.
   • The sale is part of the bank’s strategy to strengthen its capital base.

3. QIP (Qualified Institutional Placement):

   • A Qualified Institutional Placement (QIP) involves selling shares to institutional buyers without offering them to the public.
   • This method allows companies to raise capital quickly without the need for a public offering.

4. Loan Growth Targets:

   • Atul Kumar Goel, CEO of PNB, expects the bank’s loan growth to be between 11% to 12% for the fiscal year 2025.
   • In the January-March period, there was a year-on-year rise in loans of 11.2%.

5. Deposit Growth Targets:

   • PNB aims for deposit growth between 9% to 10% for the fiscal year.
   • This target is compared to a nearly 7% growth in deposits during January-March.

6. Corporate Loan Pipeline:

   • The bank’s corporate loan pipeline is around Rs 1 trillion.
   • Of this, approximately Rs 60,000 crore to Rs 70,000 crore has already been sanctioned.

7. Asset Quality Improvement:

   • PNB aims to improve its asset quality in the fiscal year 2024-25.
   • The bank targets bad loan recoveries of around Rs 18,000 crore during this period.

8. NPA Ratios:

   • PNB aims to bring down its gross non-performing asset (NPA) ratio to less than 5% and its net NPA ratio to 0.5% by March 2025.
   • As of March-end, these ratios stood at 5.73% and 0.73%, respectively.

9. Branch Expansion:

   • PNB plans to add 150 branches during the fiscal year.
   • Branch expansion is a part of the bank’s strategy to increase its reach and customer base.

10. Infrastructure Loan Regulations:

    • Indian banks, including PNB, are expected to provide feedback soon on a central bank proposal to tighten rules for infrastructure project loans.
    • This indicates the bank’s involvement in regulatory discussions and compliance efforts.

These detailed points offer a comprehensive understanding of PNB’s strategic plans, financial targets, and regulatory engagements for the upcoming months.