PNB board clears equity raise upto Rs 7,500 cr in FY25 to aid Filesadmin.co growth

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Public sector lender Punjab National Bank plans to raise equity capital up to Rs 7,500 crore in the next financial year (FY25) to meet regulatory norms and support business growth.


The Board of Directors of the bank in its meeting on December 28 approved the proposal for raising equity capital for an amount aggregating up to Rs 7,500 crore in one or more tranches during FY25.


It would look at options like Qualified Institutions Placement (QIP), Follow-on Public Offer (FPO), or any other permitted mode, or a combination thereof, to raise equity in accordance with the applicable acts, regulations, and guidelines and subject to receipt of requisite approvals.


The Delhi-based lender’s capital adequacy ratio stood at 15.09 per cent with Common Equity Tier 1 (CET1) of 10.23 per cent at the end of September 2023. The Government of India held a 73.15 per cent stake, while public shareholding was 26.85 per cent as of September 30, 2023, according to a filing with the BSE. Its stock closed 0.17 per cent higher at Rs 95.79 per share on BSE.


Besides equity, the bank has also been raising 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 via private placement.


Its global advances grew by 13.43 per cent on a year-on-year basis to Rs 9,41,721 crore as of September 30, 2023. The global deposits grew by 9.75 per cent on a Y-o-Y basis to Rs 13,09,910 crore as of September 30, 2023.

First Published: Dec 29 2023 | 6:01 PM IST