Punjab & Sind Bank MD and CEO Swarup Kumar Saha

Punjab & Sind Bank expects the Reserve Bank of India to grant regulatory relaxations on FCNR(B) deposits to support lenders operating without overseas branches. Meanwhile, the state-run bank has outlined a long-term strategy to expand its total business mix to ₹4 lakh crore by FY29.

“We have given a feeler to the Reserve Bank on this matter; how it can be simplified a bit more so that banks without foreign branches can also leverage this,” Swarup Kumar Saha, Managing Director & Chief Executive Officer of Punjab & Sind Bank told businessline. The bank has set a target of collecting $25 million through FCNR(B) and another $75 million through External Commercial Borrowing (ECB) and Overseas Foreign Currency Borrowings (OFCBs).

Banks are raising funds via the OFCB route to provide leverage to their Non-Resident Indian (NRI) customers who, in turn, can place proceeds of the leverage as FCNR (B) deposits with them. Concessional swaps for OFCB and ECB inflows are available till December 31. “It is those banks that have a foreign branch a bit advantageous position because depositors who want to put in money would like to leverage it to that extent. As of now, we are constrained by not having a foreign branch,” said Saha.

Further, he said that the regulator said they will look into it. “In what form it will come, I don’t know, but we expect some relaxation somewhere so that we can tap that market also,” said Saha. Giving the example of Canada, where large number of Sikhs NROs reside, he said: “We don’t have our presence our presence there. So, our customers may shift to other banks, but we are still trying whatever best we can do,” he said.

Meanwhile, the bank has reported a 23 per cent rise in net profit at ₹331 crore in the June quarter. At the end of the quarter, net interest margin (NIM) was at 2.53 per cent. Now, Saha expects further improvement in this area. “In the June quarter our net interest income growth was 15 per cent. We feel that downward cycle stabilisation has reached its bottom now. We should have an uptick now, so, our NIM should now improve,” he said, adding that for the current fiscal the target is 2.65 per cent.

Saha informed that the bank has a new vision that derives strength from the Viksit Bharat goals of the government. “The vision of the bank now is Viksit Bharat ka Vishwasiniya Bank (trusted bank of developed nation),” he said. It will have a customer-centric service built on trust and transparency and excellence through technology and innovation. Also, there is mid-term plan where the banks aim to have ₹4 lakh crore business by FY29, from ₹2.66 lakh crore as of June 30, 2026. |We aim to have 2,000-plus branches, 1,600 ATMs and 6,000-plus business correspondents,” he said.

Saha said the bank aims to raise ₹2,000 crore through qualified institutional placement. “We are in discussions with merchant bankers to test the appetite in the market, and we will go to the market at an appropriate time,” he said.

Published on July 21, 2026