PNB Board Approves USD 1.5 Billion Foreign Currency Fund Raise

NEW DELHI, India — Public sector lender Punjab National Bank (PNB) announced on July 29, 2026, that its Board of Directors has approved raising foreign currency funds of up to USD 1.5 billion through a Medium-Term Note (MTN) programme.

The decision was formalized during a board meeting in New Delhi, enabling the state-owned bank to issue overseas bonds via its IFSC Banking Unit located in Gujarat International Finance Tec-City (GIFT City).

Strategic Capital Raising via GIFT City Channel

The establishment of the USD 1.5 billion Medium-Term Note programme marks a significant step in Punjab National Bank's strategy to diversify its long-term funding sources and strengthen its overseas balance sheet.

According to regulatory filings submitted to Indian stock exchanges, the issuance of foreign currency debt instruments will be managed through the bank's offshore banking branch situated in GIFT City, Gujarat.

The board meeting convened at 1:00 p.m. IST and concluded at 7:00 p.m. IST on July 29, 2026, where directors evaluated capital requirement strategies before giving the final clearance.

Market Regulatory Compliance and Corporate Filings

The board's approval was officially communicated to stock exchanges under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The corporate disclosure was signed and submitted by Company Secretary Bikramjit Shom on behalf of the bank. The establishment of the MTN framework allows Punjab National Bank to issue bonds in multiple tranches depending on international credit market conditions, interest rate movements, and institutional investor demand.

Official Sources Section

The information detailed in this report is based on official corporate disclosures filed by Punjab National Bank with the National Stock Exchange of India Limited and the BSE Limited. Additional details on the bank's international operations and IFSC branch activities are accessible via the Punjab National Bank Official Portal and regulatory updates from the International Financial Services Centres Authority.

Quote Section

"According to officials, the Board of Directors of the Bank in its meeting held today, i.e., 29.07.2026, has approved raising of foreign currency funds through establishment of a Medium-Term Note (MTN) Programme upto USD 1.5 billion and issuance of bonds thereunder through PNB IFSC Banking Unit GIFT City," stated Punjab National Bank in its stock exchange submission.

Why It Matters

Establishing a USD 1.5 billion Medium-Term Note programme provides Punjab National Bank with a flexible structure to access global capital markets efficiently. Raising debt through its GIFT City IFSC unit allows the lender to leverage India’s international financial hub to support global trade finance, cross-border corporate lending, and long-term asset growth without capital conversion friction.

Key Facts at a Glance

• Approved Funding Limit: Up to USD 1.5 billion in foreign currency funds.

• Structure: Medium-Term Note (MTN) programme.

• Execution Hub: PNB IFSC Banking Unit at GIFT City, Gujarat.

• Approval Date: July 29, 2026.

• Regulatory Compliance: Submitted under SEBI (LODR) Regulations 30 and 51.

Frequently Asked Questions (FAQ)

What amount has Punjab National Bank approved for its foreign fund raise?

Punjab National Bank's board has approved raising up to USD 1.5 billion in foreign currency funds.

What channel will PNB use to issue the bonds?

The bonds will be issued through the PNB IFSC Banking Unit located in GIFT City, Gujarat, under a Medium-Term Note (MTN) programme.

When was the board approval granted?