Punjab National Bank (PNB) is preparing to enter the acquisition finance market in the third quarter of fiscal year 2027, marking a strategic expansion into corporate M&A lending.
Managing Director and CEO Ashok Chandra confirmed the move, noting that the bank will initially concentrate on domestic transactions to broaden its loan portfolio and reduce reliance on traditional retail and corporate lending segments.
5 billion in Foreign Currency Non-Resident (Banks) deposits by September 30.
The decision follows the Reserve Bank of India’s introduction of a new regulatory framework for acquisition finance, which has opened the door for public sector lenders to compete more aggressively in the deal-making space.
PNB’s entry is expected to intensify competition among Indian banks for large-ticket corporate deals, particularly as private sector peers have already established a foothold in this high-yield segment.
In parallel, PNB has set a target to raise USD 2.5 billion in Foreign Currency Non-Resident (Banks) deposits by September 30.
This aggressive fundraising goal aims to strengthen the bank’s foreign currency liquidity position and support its growing international operations.