NEW DELHI: State-run Punjab National Bank (PNB) on Saturday said it plans to raise Rs 3,200 crore from share sale during the current quarter to expand its capital base.
The lender had taken approval for raising Rs 14,000 crore through a mix of equity and debt.
The bank has already raised Rs 3,788.04 crore from qualified institutional placement (QIP) in December following which the government holding in the bank came down from 85.59 per cent to 76.87 per cent.
“We have taken Rs 4,000 crore from Tier-II and Rs 3,788 crore we have taken through QIP at the end of December. In January, we also took AT-1 of another Rs 500 crore. We are actively looking at going for QIP again and I am confident that the remaining Rs 2,500 crore of under Additional Tier-1 bonds will be garnered from the market before March 31,” said PNB Managing Director S S Mallikarjuna Rao.
As per the plan, PNB decided to raise Rs 3,000 crore from AT-1 bonds, Rs 4,000 crore from Tier II bonds and Rs 7,000 crore from QIP.
Speaking to reporters after quarterly results, Rao said that the current level of capital adequacy ratio is sufficient to take care of not only the requirement in the month of March 2021 but also during the next financial year.
PNB on Friday posted a net profit of Rs 506.03 crore for the December quarter as against a net loss of Rs 492.28 crore last fiscal.
Rao is also confident that the bank will record profits in the fourth quarter and achieve an overall indicated profit of Rs 2,000 during the said quarter despite Covid-19 induced challenges.
The public sector bank further hopes to keep its gross NPA level below 14 per cent by end-March this fiscal.