Punjab & Sind Bank is seeking a level playing field in the foreign currency market. MD and CEO Swarup Kumar Saha recently shared that the bank has requested the Reserve Bank of India (RBI) to relax rules for Foreign Currency Non-Resident - Bank [FCNR(B)] deposits. FCNR(B) deposits are fixed deposits kept in foreign currency like Dollars or Pounds by NRIs. Currently, banks that do not have branches in foreign countries face difficulties in attracting these deposits compared to larger banks with a global presence.

The bank wants the RBI to simplify procedures so that lenders without overseas offices can still benefit from high-value foreign deposits. Currently, many NRI customers prefer to use banks with local branches in their country of residence to leverage funds. For example, Punjab & Sind Bank has a huge connection with the Sikh community in Canada. However, because the bank has no physical branch there, customers might move to other banks. To fix this, the bank is aiming to collect $25 million through FCNR(B) and $75 million through other foreign borrowing routes by December 31.

Beyond foreign currency, the bank has announced a massive long-term growth strategy. By the financial year 2028-2029 (FY29), the bank wants its total business mix to reach ₹4 lakh crore. As of June 2024, the business stands at ₹2.66 lakh crore. This is a very ambitious target for the public sector lender. To reach this goal, the bank plans to expand its physical reach across India. It aims to have over 2,000 branches, 1,600 ATMs, and more than 6,000 Business Correspondents (BCs) who provide banking services in remote areas.

Financially, the bank is showing strong progress. In the June quarter, Punjab & Sind Bank reported a 23 per cent jump in net profit, reaching ₹331 crore. Its Net Interest Margin [NIM]—the difference between interest earned on loans and interest paid on deposits—stood at 2.53 per cent. CEO Saha believes the worst is over and expects the NIM to improve to 2.65 per cent for the full year. Net internal income also grew by a healthy 15 per cent during the same period.

The bank has adopted a new slogan: “Viksit Bharat ka Vishwasiniya Bank” (Trusted Bank of a Developed Nation). This vision focuses on being more customer-centric and using technology to improve service. To fund this expansion and digitisation, the bank plans to raise ₹2,000 crore through a Qualified Institutional Placement [QIP]. A QIP is a way for listed companies to raise capital by selling shares to large institutional investors like mutual funds or insurance companies.

For Indian bank employees and those preparing for bank exams, this news highlights two major trends. First, public sector banks are becoming more aggressive in their business targets. Second, there is a push for regulatory changes to help smaller or domestic-only banks compete for foreign funds. The transition from a ₹2.66 lakh crore business to a ₹4 lakh crore business will likely mean more job opportunities, more technology adoption, and a faster pace of work within the bank in the coming years.

Looking ahead, all eyes will be on the RBI’s response to the request for FCNR(B) relaxation. If the regulator agrees, it could change how all Indian banks without foreign branches collect foreign money. Additionally, the bank's upcoming QIP will test how much confidence big investors have in this growth story. For customers, the expansion of the branch and ATM network means better access to services, especially in areas where the bank is already a popular household name.