• Business growth: Advances grew around 15% year on year, while UPI transactions grew around 24% on a YoY basis in Q1 FY27. Management said PNB’s balance sheet is strong and sustainable, with a credit-deposit ratio above 75%.
• FCNR deposits: PNB mobilized $2.7 billion against an initial estimate of 2.5 billion USD; around 67% was leveraged. The bank said it had utilized almost the entire amount this quarter to reduce bulk deposits and the CD, helping lower its cost of deposits.
• UPI MDR impact: Around 96% of PNB’s transactions are below ₹2,000 and will not be affected; the benefit from the remaining transactions is expected to be very small. Management said any proceeds would go toward system resilience and cybersecurity, while developing UPI credit-line and cross-border remittance capabilities.
• Rate transmission: Management expected a 25 basis point repo increase and said 56% of PNB’s assets are repo-linked, with changes passed on to customers by the next working day. It said liquidity was strong and there was no urgency to raise deposit rates.
• Earnings outlook: PNB’s guidance is for 7 to 10% growth in NII and improvement in NIM, even without a repo rate increase. Management cited a 4 basis point NIM improvement in the June quarter and expects the improvement to continue.