PNB and IIFCL Collaborate for Infrastructure Project Financing

On June 3, 2024, Punjab National Bank (PNB) and India Infrastructure Finance Company Ltd (IIFCL) signed an agreement to offer long-term financial assistance to viable infrastructure projects. This collaboration aims to jointly fund infrastructure projects through a consortium or multiple lending arrangements, with both parties participating, pending thorough due diligence on a case-by-case basis.

The Memorandum of Understanding (MoU) was signed in the presence of Atul Kumar Goel, Managing Director and Chief Executive Officer of Punjab National Bank, and Padmanabhan Raja Jaishankar, Managing Director of India Infrastructure Finance Company Limited.

The memorandum of understanding (MOU) signifies a significant milestone in exploring fresh avenues for lending to the nation’s infrastructure projects. Both parties pledged full participation in this initiative.

About India Infrastructure Finance Company Ltd

Established in 2006 by the Government of India, India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned entity that provides long-term financial aid to viable infrastructure projects. It operates through the Scheme for Financing Viable Infrastructure Projects via a Special Purpose Vehicle known as IIFCL, commonly called SIFTI.

IIFCL is recognised as one of the most diversified public-sector infrastructure lenders, offering financial solutions across various infrastructure subsectors. As of March 31, 2024, IIFCL has sanctioned approximately ₹2,55,687 crore to more than 760 projects under various schemes, with cumulative disbursements reaching around ₹1,28,004 crore to more than 503 projects.

About Punjab National Bank

Punjab National Bank is the first Swadeshi Bank in India. PNB is a Banking and Financial service bank owned by the Government of India. In Q4 FY 2024, the company’s net profit increased YoY by 159.8% and QoQ by 35.4% to ₹3,010 crore. During FY 2024, the net profit rose to ₹8,245 crore, recording a robust growth of 228.8% against ₹2,507 crore posted during FY 2023.

On June 4, 2024, the share price of Punjab National Bank Ltd opened at ₹136.40, touching the day’s low at ₹123.30, as of 11:15 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.