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PNB to raise Rs 7,000 crore from QIP in December

PNB expects the credit growth to pick up marginally in the second half of the year. However, it would be less than 5 per cent for the entire fiscal

twitter-logoBusinessToday.In | November 3, 2020 | Updated 18:37 IST
PNB to raise Rs 7,000 crore from QIP in December
Punjab National Bank

Punjab National Bank on Tuesday said that it plans to raise Rs 7,000 crore through qualified institutional placement (QIP) in December this year to increase its capital base for meeting business plan. The government-owned bank expects the credit growth to pick up marginally in the second half of the year. However, it would be less than 5 per cent for the entire fiscal.

The board has already given an approval for raising Rs 14,000 crore by way of Tier II, Additional Tier 1 (AT-1) bonds and QIP, PNB Managing Director S S Mallikarjuna Rao said in a virtual interaction with the media. "Of this, Rs 4,000 crore is for Tier II. Against this, we have raised Rs 2,500 crore and remaining Rs 1,500 crore and additional Rs 3,000 crore from AT-1 bonds will be raised before November 30. With respect to QIP of Rs 7,000 crore, we are planning to go to the market in the second or third week of December. It would depend on the book running lead manager (BRLM) and roadshows," he said.

"With respect to unlocking value in subsidiaries, as on today we don''t have any plan. We will be looking that proposal in future if anything is required. We are adequately capitalised," he said.

PNB also has plans to raise Rs 500 crore from sale of real estate during FY21. He also said the bank has decided to infuse Rs 600 crore in its mortgage arm PNB Housing Finance through preferential issue or rights issue subject to Reserve Bank of India (RBI) approval.

Besides, he said, the bank is expecting Rs 8,000 crore from the resolution cases before the National Company Law Tribunal. Asked about the outlook for the current financial year, Rao said, the bank aims to earn moderate profit in every quarter.

Also read: Latest FD rates: SBI, HDFC Bank, PNB, Bank of Baroda, Canara Bank

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