PNB CEO sees profit topping ₹20,000 cr in current fiscal year

Loan growth will run at 12-13 percent this fiscal year, with deposit growth at 9-10 percent, Chandra added.

The bank plans to enter acquisition finance in the third quarter after the Reserve Bank of India opened the window for lenders earlier this year. The RBI's final guidelines raised the lending limit to 75 percent of deal value from the 70 percent proposed in the draft.

"The acquisition finance market is a very, very big market and ample opportunities are there in the system. We have got our policy approved for the acquisition financing in the last board meeting," Chandra said.

"We are looking for a good partner and then maybe from Q3 onwards, we will be initiating some work in the acquisition financing."

The bank will start with domestic entities, he said, which will help diversify its asset portfolio.

Under the RBI's conditions for acquisition financing, the acquiring company must provide a corporate guarantee. The debt-to-equity ratio must not exceed 3:1 post-acquisition on a continuous basis. Equity shares or compulsorily convertible debentures acquired must be free of any encumbrance. Borrowers need a net worth of at least ₹500 crore and three consecutive years of net profit. Unlisted entities must carry investment-grade ratings.