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The board of Punjab National Bank (PNB) has approved fresh equity capital raising of up to Rs 5,000 crore.
The equity capital mop-up could happen through a Qualified Institutional Placement (QIP)/ Follow-on-Public Offer (FPO)/ Rights Issue, sources said.
This will be the first big equity capital mop-up (besides Government capital infusion) after the Rs 13,000-crore Nirav Modi scam hit the bank two years ago.
PNB has also been trying to sell its non-core assets to shore up funds. It's recent attempt to dilute holding in PNB Housing Finance hit an airpocket with the regulator, RBI, raising an issue on the transaction.
Meanwhile, the bank is expected to declare its first quarter results for the current fiscal later in the day.
It may be recalled that PNB had, after staging a turnaround in the third quarter last fiscal, returned to the red with a net loss of Rs 4,750 crore in the fourth quarter ended March 31, 2019.
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