SynopsisPunjab National Bank is seeking a partner for its merger and acquisition financing portfolio. The bank aims to gather $2.5 billion in special FCNR(B) deposits and has already mobilized funds. Its corporate loan book is projected to exceed four lakh crore rupees this fiscal year. PNB is actively focusing on renewable energy and emerging sectors like hydrogen capacity.Listen to this article in summarized formatANIPunjab National Bank Executive Director Amit Kumar Srivastava New Delhi: Punjab National Bank (PNB) is scouting for a partner to develop its merger and acquisition financing portfolio and is in discussion with some international funds, chief executive Ashok Chandra told ET. The bank aims to garner $2.5 billion in special FCNR (B) deposits and has already mobilised around $425 million.Chandra also said the bank's corporate loan book would exceed ₹4 lakh crore this fiscal, while it continues to focus on the renewable energy segment, including financing opportunities in building hydrogen capacity and upcoming smaller nuclear units."On M&A financing, a board-approved policy is now in place as of last month, and we are looking for some good partnerships with some other banks," Chandra said.PNB will start looking for some opportunity in the segment from the third quarter of this fiscal year.India's banking regulator has allowed local lenders to fund corporate takeovers from this fiscal year, opening up a revenue stream hitherto dominated by overseas banks or bulge-bracket private equity funds.The Delhi-based lender Saturday posted a three-fold jump in its net profit at ₹5,253 crore for the first quarter of this fiscal. Chandra said that as the bank migrated to the new tax regime, the tax liability decreased by ₹3,358 crore, which directly added to the bottom line."We have reduced operating cost, non-interest income has increased, and we have got very good traction from these activities," he said.Credit DemandLoan growth in retail was 17.5%, MSME at 20%, agri-priority sector at 16.4% and the corporate book has grown by 10%.Chandra said the bank has taken upon renewable energy as a champion sector and is growing at more than 30% YoY in this particular area. "Whatever new product that comes, like nuclear, smaller units or even hydrogen capacity, in all those areas we are equipping ourselves, and we will participate in those activities," he said.Chandra said despite the ongoing West Asia crisis, the Indian economy is very resilient, which is also reflected in the bank's books."We are seeing the lowest stress for the last several years. Slippages have come down from 0.71% last year to 0.68%; overall SMA stands at 2.9% of the overall loan book. As of now, absolutely, we are not seeing any impact in any of the sectors," he said.On the El Nino impact, which can impact the loans in the agriculture sector, Chandra said only in the third quarter will they be in a better position to explain the impact which is going to happen, as monsoons often get delayed. "But if the situation doesn't improve, definitely going forward there will be some challenge in the agri-related activities," he noted.On overall recoveries, PNB has set a target of ₹13,000 crore this fiscal and already made recoveries of around ₹2,800 crore in the first quarter.( Originally published on Jul 18, 2026 )Read More News on...moreless