Commenting on the same, PNB Chairman and Managing Director KR Kamath, exclaimed, "We may require some capital at the end of the year. We can raise something like Rs 2,000 crore, depending on the interest rate condition." He further added, “Interest rates are very high now. We are just waiting that in the third or fourth quarter, interest rates to soften, maybe that is the time we will enter the market and raise Tier I or Tier II capital."
Further, despite the regular increase in interest rate by Reserve Bank of India since last 15 months, PNB is positive about 20-22% increase in loan growth. However, hinting towards the revision of the bank's lending soon, it said the increase is dependent on liquidity in the system and credit demand. RBI, as a step to curb inflation, recently increased its key policy rates by 25 basis points. The increase in the rates further resulted slowdown in credit growth. However, PNB claims to be not impacted much due to the slowdown. On the contrary it states the advances are growing at the rate of 24% on a year-on-year basis.
Talking about the global expansion of the bank, Kamath revealed the bank's plan to get established in Australia, initially through representative office. PNB has already received the license for the same. Additionally, the bank has already acquired a majority stake in Kazakhstan-based JSC Dana Bank for about $23.7 million (about Rs 104 crore), last year. He further added, "Our licence for a subsidiary in Canada is pending with the Canadian regulator and we are pursuing it. We are also pursuing our application for upgrading our office in Oslo in Norway into a full-fledged branch."
Domestically, the bank has recently opened its e-lobby in Delhi, where in the customers can deposit, withdraw, update passbooks and do other transactions on his own with the help of technology. The intention of opening e-lobby is to reduce the congestion of branches, thereby providing better services to the consumers.