New Delhi | Punjab National Bank (PNB) has approved a significant international fundraising initiative with its Board of Directors clearing the establishment of a Medium-Term Note (MTN) Programme of up to USD 1.5 billion. The strategic move is aimed at strengthening the bank’s access to foreign currency funding and supporting its long-term business expansion plans.
The decision was taken during the Board Meeting held on July 29, 2026, marking another important step in PNB’s efforts to diversify its funding sources and enhance its global financial capabilities.
Major International Fundraising Initiative
Under the approved proposal, Punjab National Bank will establish a Medium-Term Note (MTN) Programme with a maximum size of USD 1.5 billion. The programme will enable the bank to raise long-term foreign currency resources by issuing bonds through its International Financial Services Centre (IFSC) Banking Unit located at GIFT City, Gujarat.
The key highlights of the approved programme include:
- Programme Size: Up to USD 1.5 billion
- Purpose: Raising long-term foreign currency funds
- Issuing Entity: PNB IFSC Banking Unit
- Location: GIFT City (Gujarat International Finance Tec-City)
The MTN Programme will provide PNB with greater flexibility to access international debt markets, helping the bank secure funds from global investors as and when required.
Strengthening Global Funding Capabilities
The approval reflects PNB’s strategy to diversify its funding base beyond domestic markets by leveraging the opportunities available through GIFT City, India’s premier International Financial Services Centre (IFSC).
Raising funds through an MTN Programme allows financial institutions to issue debt securities in multiple tranches over a specified period, enabling them to respond efficiently to changing market conditions and investor demand.
The additional foreign currency resources are expected to support the bank’s:
- International banking operations
- Trade finance activities
- Corporate lending
- Foreign currency asset growth
- Overall business expansion requirements
Board Meeting Details
According to the bank’s regulatory disclosure, the Board Meeting commenced at 1:00 p.m. and concluded at 7:00 p.m. on July 29, 2026.
The announcement was made in compliance with Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency and timely disclosure to shareholders and investors.
Strategic Importance for PNB
As one of India’s largest public sector banks, Punjab National Bank continues to strengthen its capital and funding profile to meet the evolving needs of domestic and international businesses. The establishment of the USD 1.5 billion MTN Programme is expected to enhance the bank’s ability to access global capital markets, improve financial flexibility, and support sustainable long-term growth.
The initiative also aligns with the Government of India’s vision of developing GIFT City as a globally competitive financial hub capable of attracting international investment and facilitating cross-border financial transactions.
With this approval, PNB is well-positioned to mobilize foreign currency resources efficiently, strengthen its international presence, and expand its capacity to finance trade, infrastructure, and corporate growth while maintaining a diversified and resilient funding structure.
