Min balance fine removal may benefit PNB in long run

Punjab National Bank (PNB)—which did not disburse any credit to startups in the (FY25)—has now set up seven startup-focused centres across the country to boost lending, its managing director and chief executive officer, Ashok Chandra, said in an interview with Harsh Kumar at PNB headquarter in New Delhi. Chandra also said the state-owned lender was planning to list its subsidiary, Canara HSBC Life Insurance, by the third quarter of FY26 and would dilute 10 per cent of its current 23 per cent stake. Edited excerpts:

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How do you view the potential impact of the 25 per cent tariff imposed by the US, particularly on Indian industry?

■ I see this from a different angle. If you look at countries that are facing these tariffs, 35 per cent in textiles for example, it gives Indian exporters a competitive edge. This could help us scale up, expand our market presence, and penetrate new markets more effectively. For now, we are studying our portfolio to assess how many of our borrowers are exporters and how they may be impacted. It's too early to say definitively, as more clarity is needed. But overall, I view this as a growth opportunity for India, as competing countries are now subject to higher tariffs.

PNB has recently removed the penalty on not maintaining a minimum balance in savings accounts. Will this impact your bank's income?