Hong Kong Monetary Authority (HKMA) is enhancing the Supervisory arrangements on Punjab National Bank’s (PNB) Hong Kong branch (PNB HK), in view of the capital position of the Bank as at March 31, 2018 being below the regulatory requirement (including countercyclical buffer) of Reserve Bank of India.
Accordingly, PNB HK is required to maintain high quality liquid assets (HQLA) in Hong Kong equivalent to 100% of unpledged deposits. Besides, the HQLA should be deposited with PNB HK's sub-account opened/to be opened with the Central Moneymarkets Units and bank not to proactively solicit customer deposits while transactional deposits such as pledged deposits for commercial loans would be excluded from this supervisory arrangement. The Bank is also required to maintain a position of ‘net due to’ its head office, other branches and any direct or indirect subsidiaries and associates of the bank.
The supervisory arrangements are applicable only to the bank’s Hong Kong branch and will not have any material impact on the Bank's operations in Indian and other overseas centers.
