Informist, Friday, Sep 6, 2024

--PNB ED: Likely to raise up to 50 bln rupees via QIP this month

By Sachi Pandey, Kabir Sharma, and Sourabh Kumar

MUMBAI – Punjab National Bank plans to raise up to 50 bln rupees through a qualified institutional placement this month, Binod Kumar, the bank's executive director, told Informist today on the sidelines of the FIBAC 2024 conference. The public sector bank plans to raise up to 50 bln rupees through the instrument, he said.

"We are coming out with QIP. We do not plan either tier-I or tier-II (bonds) right now, we are adequately capitalised. But at some point, when time is right, we will come with infrastructure bond, not right now," Kumar said.

In January, the board of directors of Punjab National Bank had approved raising up to 75 bln rupees in 2024-25 (Apr-Mar). However, on Jul 27, during the announcement of the bank's Apr-Jun earnings, the bank shared its plans to raise 50 bln rupees through a qualified institutional placement this financial year.

"We have approval of 7,500 crore (75 bln rupees), but we are planning up to 5,000 crore (50 bln rupees), including greenshoe option," Kumar said. "We are already in the roadshow, so it will be very shortly."

Kumar confirmed that the bank would tap the market with the instrument this quarter itself.

Earlier, the bank had planned to raise the amount through qualified institution placements, follow-on public offer, or any other permitted mode, in one or more tranches.

For the quarter ended June, the bank reported a net profit of 32.52 bln rupees. Its Basel-III capital adequacy ratio was 15.79%.

Shares of Punjab National bank today closed at 110 rupees on the National Stock Exchange, down 3%. End

Edited by Avishek Dutta

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