PNB to boost Rs 3,200 crore from share sale this quarter

Punjab National Bank on Saturday mentioned it plans to boost Rs 3,200 crore from share sale in the course of the present quarter to reinforce 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 way 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 mentioned.

Talking to the media after end result, he mentioned, “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 mentioned, present stage of capital adequacy ratio is enough to handle not solely the requirement within the month of March 2021 but additionally in the course of the subsequent monetary yr.
Besides, Rao mentioned, the financial institution has offered a few of the non-core property together with sale of its holding in UTI Mutual Fund.
Going forwards, he mentioned, the financial institution expects to mobilise Rs 500 crore from sale of actual property by June 2021.