PNB to ink foreign bank tie-up within fortnight, says MD

Punjab National Bank is on track to conclude a memorandum of understanding with an international banking partner in the coming fortnight, the institution's top executive said on Tuesday. Managing Director and Chief Executive Ashok Chandra indicated that final negotiations are in advanced stages and the agreement is expected to materialise within 10-15 days. The development marks a significant step in PNB's strategy to strengthen its international operations and expand its global footprint.

Chandra underscored the bank's robust financial position, noting that PNB maintains ample capacity to grow its credit portfolio in sync with deposit expansion. This alignment between credit and deposit growth reflects the lender's prudent approach to balance sheet management and risk mitigation.

The foreign bank partnership is expected to facilitate cross-border transactions, enhance trade finance capabilities, and provide customers with improved access to international banking services. For PNB, India's second-largest public sector bank by assets, the collaboration represents an opportunity to leverage foreign expertise while strengthening its competitive position in the domestic market.

The executive's comments come as Indian banks intensify efforts to bolster their international presence amid growing opportunities in cross-border commerce and rising demand for global financial services among domestic corporates and high-net-worth individuals.