PNB Plans to Open Office in Dubai to Expand Global Presence

New Delhi – Punjab National Bank (PNB), a state-owned bank, plans to open a representative office in Dubai. The bank’s board of directors has approved the plan, and the process of getting regulatory clearance is underway, said PNB Managing Director Atul Kumar Goel. If all approvals are secured, the office should open during this financial year.

As of March 31, 2024, PNB operates in six countries through two subsidiaries in London, UK, and Bhutan, a joint venture in Nepal, and representative offices in Myanmar and Bangladesh.

To improve profitability, PNB plans to expand its retail, agriculture, and MSME (RAM) portfolio, provide good corporate loans, control financial slippages, and enhance recovery processes. Additionally, the bank aims to boost foreign exchange income and increase fee income by selling third-party products.

Goel also mentioned that PNB aims to increase its low-cost deposits through Current Account Savings Account (CASA). At the end of March 2024, CASA made up 41.4% of total deposits, with a goal to raise this to over 42% by the end of the fiscal year. The bank also intends to keep credit costs below 1% this year.

With these strategies, PNB expects the Return on Assets (ROA) to increase to 0.8% this year and reach 1% by March 2025, leading to a significant rise in profit.

Regarding business growth for the current financial year, Goel expects credit growth of 11-12% and deposit growth of 9-10%. To support this growth, PNB plans to raise Rs 17,500 crore through Tier I and Tier II bonds and private share placements. In FY24, PNB raised Rs 10,000 crore from these bonds at competitive rates.