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PNB to open representative office in Dubai, expanding overseas presence

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In Short:

Punjab National Bank is planning to open a representative office in Dubai to expand globally. The bank aims to focus on increasing retail, agriculture, and corporate loans, as well as improving recovery and forex income. They plan to increase low-cost deposits and keep credit costs low to increase profit. With these efforts, they expect a significant jump in profit by the end of March 2025.


Punjab National Bank Plans to Expand to Dubai

Exciting news from the State-owned **Punjab National Bank** – they are gearing up to open a representative office in Dubai! This move is part of their ambitious plan to spread their wings globally and make a mark in the international market.

Approval and Process

The board of directors at PNB has given the green signal for this expansion, and now they are in the process of seeking regulatory clearance. According to PNB managing director **Atul Kumar Goel**, if all goes well with the approvals, the representative office should be up and running sometime during the current financial year.

Current International Presence

As of March 31, 2024, PNB already has a presence in six countries through its subsidiaries in London-UK and Bhutan, a joint venture in Nepal, and representative offices in Myanmar and Bangladesh.

Profitability Strategy

**Atul Kumar Goel** shared that their strategy to boost profitability includes expanding their retail, agriculture, MSME portfolio, extending corporate loans, and focusing on controlling slippages and improving recovery. They are also aiming to enhance forex income and increase fee income through third-party product sales to boost their non-interest income.

Improving Interest Income

To improve interest income, their focus is on increasing low-cost deposits such as CASA (Current Account Savings Account). Currently standing at 41.4%, the target is to raise it beyond 42% by the end of the current fiscal year.

Business Growth Targets

**Atul Kumar Goel** anticipates a credit growth of 11-12% and a deposit growth of 9-10% in the current financial year. To support this growth, the bank has approval to raise capital up to ₹17,500 crore through Tier I and Tier II bonds and private placement of shares.

Future Outlook

With these strategic efforts, PNB aims to keep credit costs below 1% this fiscal year. They expect the Return on Assets (ROA) to increase to 0.8% and touch 1% by March 2025, leading to a significant rise in profits.

Exciting times ahead for **Punjab National Bank** as they set their sights on Dubai and work towards achieving their ambitious growth targets!

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