Public sector lender Punjab National Bank plans to raise equity capital of up to Rs 7,500 crore in the next financial year (FY25) to meet regulatory norms and support business growth.
The bank's Board of Directors, at its meeting on December 28, approved the proposal to raise equity capital aggregating Rs 7,500 crore in one or more tranches during FY25.
Options such as Qualified Institutions Placement (QIP), Follow-on Public Offer (FPO) or any other permitted mode, or a combination thereof, would be considered to raise equity capital in accordance with applicable laws, regulations and guidelines and subject to receipt of necessary approvals.
The Delhi-based lender's capital adequacy ratio stood at 15.09 percent at the end of September 2023, while its Common Equity Tier 1 (CET1) stood at 10.23 percent. The Indian government had a 73.15 percent stake, while public shareholding stood at 26.85 percent. from September 30, 2023, according to a filing with the BSE. The stock closed 0.17 percent higher at Rs 95.79 per share on BSE.
In addition to equity, the bank has also raised capital through debt instruments. Earlier this week, it raised Rs 1,153 crore through Basel III compliant additional Tier-I bonds at a coupon of 8.55 per cent through private placement.
Global advances grew 13.43 percent YoY to Rs 9,41,721 crore as on September 30, 2023. Global deposits grew 9.75 percent YoY to Rs 13,09,910 crore as of September. 30, 2023.
First print: December 29, 2023 | 6:01 PM IST