Image Source : PTI Punjab National Bank to boost Rs 3,200 cr from share sale this quarter
State-owned Punjab National Bank on Saturday stated it plans to boost Rs 3,200 crore from share sale through the present quarter to boost 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 by means of a mixture of fairness and debt. As per the plan, the financial institution determined to boost 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 stated.
Talking to the media after outcome, he stated, “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 stated, present degree of capital adequacy ratio is enough to maintain not solely the requirement within the month of March 2021 but additionally through the subsequent monetary 12 months.
Besides, Rao stated, the financial institution has offered a number of the non-core belongings together with sale of its holding in UTI Mutual Fund. Going forwards, he stated, the financial institution expects to mobilise Rs 500 crore from sale of actual belongings 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 belongings. It had posted a web lack of Rs 492.28 crore within the year-ago interval.
Total revenue within the quarter underneath evaluate rose to Rs 23,298.53 crore as towards Rs 15,967.49 crore earlier. On the outlook, Rao stated, the financial institution expects to shut the present monetary 12 months with annual revenue of Rs 2,000 crore.
Also Read: RBI says all 18,000 banks to have Cheque Truncation System by September
Latest Business News