Business News
Punjab National Bank to raise up to Rs 5,000 cr through QIP to boost capital ratio
Mumbai: Public lender Punjab National Bank said it has initiated the process of raising up to Rs 5,000 crore through (QIP).
The committee of directors for capital mop-up at a meeting approved opening of the QIP, Punjab National Bank (PNB) said in a regulatory filing on stock exchanges.
The bank has approved the floor price of Rs 176.35 per share of face value Rs 2, it said.
The board of the bank had already given approval a few weeks ago to mobilisation of Rs 5,000 crore through various instruments, including rights issue and private placement, during 2017-18.
The total fundraising, including the upsize option, is aimed at boosting the bank’s capital ratio.
State-run banks are raising funds as part of a recapitalisation plan in which New Delhi will inject 1.35 trillion rupees through recapitalisation bonds, while the lenders are required to raise on their own about 580 billion rupees.
Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC, Kotak Mahindra Capital, Morgan Stanley and PNB Investment Services are the banks managing the sale.
