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Punjab National Bank board approves raising up to Rs 10,000 crore via equity, debt

The public sector lender said that it would raise funds through a combination of qualified institutional placement (QIP), follow-on public offering (FPO), rights issue and issuance of Tier-2 Bonds to help meet growth needs

twitter-logoBusinessToday.In | July 9, 2020 | Updated 19:41 IST
Punjab National Bank board approves raising up to Rs 10,000 crore via equity, debt
Punjab National Bank

Punjab National Bank (PNB) on Thursday said that its board has approved raising up to Rs 10,000 crore via equity and debt sale. The public sector lender said that it would raise funds through a combination of qualified institutional placement (QIP), follow-on public offering (FPO), rights issue and issuance of Tier-2 Bonds to help meet growth needs and regulatory requirements.

"Raising of capital through issue of equity shares and Basel III Compliant Tier-2 Bonds by way of Private Placement, Qualified Institutions Placement ("QIP"), Further Public Offer ("FPO"), Rights Issue or any other mode or through a combination thereof up to an amount of Rs.10000 Crore and seeking approval of the shareholders for raising of equity capital for an amount upto Rs.7000 Crore in the forthcoming AGM," PNB said in the exchange filing.

Shares of PNB closed the intraday trade at Rs 37.10, down 0.15 points, or 0.40 per cent on NSE.

Meanwhile, PNB's net loss came down to Rs 697.20 crore for the quarter ended March 31, as against Rs 4,749.64 crore loss in the corresponding period last year. The asset quality of the lender improved with the percentage of gross non-performing assets (NPA) at 14.21 per cent against 15.90 per cent YoY. The figure stood at 16.30 per cent in the preceding quarter ended December 31. The percentage of net NPA also improved to 5.76 per cent from 6.56 per cent YoY.

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