NEW DELHI: State-run Punjab National bank, the second largest public sector lender, is targeting a mop up of $2.5 billion from Foreign Currency Non-Resident Bank deposits and has raked in $425 million so far.“We are getting major traction from the UK, Dubai and GIFT City. The demand is quite good,” PNB managing director Ashok Chandra told TOI. The scheme aims at attracting foreign funds, backed by incentives.Having reported a three-fold jump in first quarter profits, Chandra is hopeful of the momentum sustaining with deposit and credit growth being on track, as he keeps close tabs on the monsoon, which has so far not had any impact on the bank.“As of now, there is no stress visible (on our books). If the monsoon doesn’t recover in the coming two months, in the long-run there may be some impact. Agriculture is still a mainstay for large number of people; hence some sign of stress might start coming in Q3 (Oct-Dec).” The state-owned lender is seeing sustained demand in its strongholds of north and north-western India, though the disbursement cycle is seeing a marked shift from June to July, as the monsoon sees a delayed onset year after year, he added.Govt data showed that sowing of kharif crops like rice, pulses, oilseeds and cotton is down 16% to 53.1 million hectares (mha) as of July 10 due to deficient rains. Besides, the bank is pushing for digitalisation with every second loan being disbursed through online channels. The bank is also looking to make forays in the southern states.
