PNB to List Haryana Gramin Bank by Early FY28

Punjab National Bank (PNB) intends to list its regional rural bank, Haryana Gramin Bank, in the fourth quarter of the current fiscal year or early 2027-28 (FY28). This move, as stated by MD and CEO Ashok Chandra, positions Haryana Gramin Bank among the initial regional rural banks (RRBs) to go public after recent government consolidation.

Consolidation Paves Way for Public Listing

The government’s ‘One State One RRB’ initiative significantly streamlined the regional rural banking sector. This program reduced the total number of RRBs from 48 to 23, creating a more consolidated landscape for these financial institutions.

Haryana Gramin Bank has demonstrated strong financial performance leading up to its planned public offering. Its key financial metrics highlight its operational health and potential for investors.

• Net profit: Rs 382.1 crore in FY26
• Total business: Exceeding Rs 47,000 crore

Expanding Credit Card Reach Through Collaboration

In a separate strategic development, PNB is in advanced discussions with Punjab & Sind Bank for a partnership to launch co-branded credit cards. This collaboration seeks to enhance PNB’s footprint within the competitive credit card market, a segment largely dominated by private sector lenders.

The initiative aims to allow smaller Public Sector Banks (PSBs) to leverage the established credit card infrastructure and customer networks of larger institutions. PNB currently maintains a credit card base of approximately 1 million customers, while Punjab & Sind Bank has a more limited presence in this area.

Strategic Fundraising and Digital Transformation

PNB has successfully achieved its target by raising nearly $2.5 billion through foreign currency non-resident (FCNR-B) deposits. This achievement came despite the Reserve Bank of India’s early closure of the concessional swap window, a facility the RBI had introduced to boost foreign-exchange liquidity amidst rupee pressure.

The bank is also committed to extensive integration of artificial intelligence (AI) across its operations. This digital transformation focuses on several key areas to enhance efficiency and customer service.

• Setting up fully AI-run call centers for customer service
• Deploying AI for cybersecurity enhancements
• Utilizing AI for fraud-risk management
• Implementing AI in employee training programs