PNB Board Eyes Up To Rs 7,500 Cr via QIP Or FPO

Punjab National Bank (PNB) announced plans to raise up to Rs 7,500 crore in equity capital during FY 2024-25 through avenues like qualified institutions placement (QIP), follow on public offer (FPO) or other permitted modes. Additionally, the bank recently secured Rs 1,153 crore by issuing bonds at an 8.55 per cent annual coupon rate via private placement. These bonds, qualifying as tier I capital, were allotted in Rs 1 crore denominations to 10 investors.

PNB operates in treasury, corporate/wholesale banking, retail banking, and other sectors, with the Government of India holding a 73.15 per cent stake as of 30 June 2023. Notably, the bank reported a standalone net profit of Rs 1,756.13 crore in Q2 FY24, marking a significant increase from Rs 411.27 crore in Q2 FY23. Its total income for the quarter ended 30 September 2023, surged by 27.75 per cent year on year to Rs 29,383.20 crore.

On the stock market, Punjab National Bank shares surged by 4.21 per cent, closing at Rs 95.63 on the BSE.