Punjab National Bank to raise Rs 3,200 cr from share sale this quarter

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Image Source : PTI

Punjab National Bank to raise Rs 3,200 cr from share sale this quarter

State-owned Punjab National Bank on Saturday mentioned it plans to raise Rs 3,200 crore from share sale in the course of the present quarter to improve its capital base.

The financial institution has raised Rs 3,788.04 crore from certified institutional placement (QIP) in December following which the federal government holding within the financial institution got here down from 85.59 per cent to 76.87 per cent.

The financial institution had taken approval for elevating Rs 14,000 crore via a mixture of fairness and debt. As per the plan, the financial institution determined to raise Rs Rs 3,000 crore from AT-1 bonds, Rs 4,000 crore from Tier II bonds and Rs 7,000 crore from QIP. 

“We have already taken Rs 4,000 crore from Tier-II and Rs 3,788 crore we have taken through QIP as at the end of December. In the month of January we have also taken AT-1 of another Rs 500 crore. So I am very confident that remaining Rs 2,500 crore of under Additional Tier-1 bonds will be garnered from the market before March 31,” PNB Managing Director S S Mallikarjuna Rao mentioned. 

Talking to the media after end result, he mentioned, “We are also actively looking at going for the QIP again with respect to the remaining Rs 3,200 crore to be acquired from the market at an appropriate time…it could be in this fiscal also.”  

However, he mentioned, present stage of capital adequacy ratio is adequate to maintain not solely the requirement within the month of March 2021 but additionally in the course of the subsequent monetary yr.

Besides, Rao mentioned, the financial institution has offered a few of the non-core property together with sale of its holding in UTI Mutual Fund. Going forwards, he mentioned, the financial institution expects to mobilise Rs 500 crore from sale of actual property by June 2021.

PNB on Friday reported a standalone web revenue of Rs 506.03 crore for the December quarter on the again of a discount in dangerous property. It had posted a web lack of Rs 492.28 crore within the year-ago interval.

Total revenue within the quarter below overview rose to Rs 23,298.53 crore as in opposition to Rs 15,967.49 crore earlier. On the outlook, Rao mentioned, the financial institution expects to shut the present monetary yr with annual revenue of Rs 2,000 crore. 

Also Read: RBI says all 18,000 banks to have Cheque Truncation System by September

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