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Informist, Monday, Aug. 31, 2026

 

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--PNB MD: Will meet aim of $2.5 bln via FNCR(B) deposits by end of day
--CONTEXT: PNB MD Chandra's remarks in interaction with Informist
--PNB MD: See credit-to-deposit ratio at 77-78% by FY27-end
--PNB MD: Already getting leverage from AI adoption
--PNB MD: No plan to further monetise subsidiaries
--PNB MD: Don't see our AI adoption reducing employee count

 

NEW DELHI – Punjab National Bank will cross its aim of raising $2.5 billion through foreign currency non-resident (banks) deposits by the end of the day, Managing Director and Chief Executive Officer Ashok Chandra said Monday. The Reserve Bank of India had brought forward its deadline to mobilise deposits under a special scheme by a month to Monday from Sept. 30 earlier.

 

"I'm very happy to share that the commitment we had given of $2.5 billion, the bank is going to raise that," Chandra said in an interaction with Informist. "By end of day today we are going to cross that line." The RBI is absorbing the entire hedging cost of three- to five-year FCNR(B) deposits raised between Jun. 8 and Monday.

 

However, the head of the state-owned lender reiterated that the guidance for deposit growth was still a conservative 9-10% in the financial year 2026-27 (Apr-Mar). The bank's credit-to-deposit ratio may rise to 77-78% by the end of FY27 from around 73% as on Jun. 30 as deposits may grow by around 12-13%, Chandra said.

 

The PNB managing director was speaking on the sidelines of the bank's AI Summit 2026, focusing on its push towards adopting artificial intelligence. The top executive did not expect a fall in employee count as the use of the new technology increases, at least at the public-sector bank. Instead, he highlighted that AI would augment the activity of current employees and also help in upskilling them.

 

The lender is already getting operating leverage from its increased use of AI and technological progress, Chandra said. PNB plans to spend around INR 34 billion to beef up its digital products in FY27 but Chandra declined to give a break-up of the amount focusing only on AI adoption.

 

The bank's three major unlisted subsidiaries -- PNB Housing Finance, PNB MetLife Life Insurance, and PNB Gilts Ltd. -- have begun using AI-led products in their businesses, with major scope of growth in all three. At the same time, the managing director reiterated that the public-sector bank is not looking to monetise these subsidiaries any further.

 

For the June quarter, the Delhi-headquartered bank's net profit rose 214% on year to INR 52.53 billion. Monday, its shares ended at INR 114.23 on the National Stock Exchange, down 1.0% from Friday.  End

 

Reported by Aaryan Khanna

Edited by Rajeev Pai

 

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