• UPI MDR impact: Person-to-person transfers and merchant payments under ₹2,000 remain free, with only about 4% of transactions exceeding ₹2,000 and qualifying for the 0.4% MDR. Management expects the resulting incremental revenue to be very modest.
• UPI ecosystem strategy: Small MDR components are designed to fund cybersecurity frameworks and scale infrastructure rather than drive major profits. Strategic priorities include scaling cross-border UPI beyond the current 11 partner countries and expanding credit on UPI.
• Loan book composition: The bank's lending book is 56% repo-linked, ~8% treasury bill-linked, 4% to 5% base rate-linked, and the remainder on MCLR. In line with board policy, any changes to the repo rate are passed through to borrowers on the next working day.
• FCNR deposit mobilization: PNB mobilized $2.7 billion against an initial target of $2 to $2.5 billion, aided by an early $1 billion raise from the Taiwan market. The funds were used to shed bulk deposits and certificates of deposit, preventing any adverse impact on NII or NIM.