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Punjab National Bank (PNB) plans to raise about ₹7,500-crore equity capital in 2024-25 in one or more tranches.
The PNB Board took this decision at its meeting on Thursday.
The capital will be raised through Qualified Institutions Placement (QIP)/Follow on Public Offer (FPO) or any other permitted mode or a combination of such modes, PNB said in a filing with the stock exchanges.
The country’s second largest public sector bank had Board approval to raise capital worth ₹12,000 crore in 2023-24.
Atul Kumar Goel, Managing Director & CEO, PNB had, post the Q2 results announcement, said that the bank was comfortably placed on the capital front with a capital adequacy ratio of over 15 per cent.
Additional Tier-1 Bonds
Meanwhile, PNB, on Thursday, said that it has raised ₹1,153 crore capital via Additional Tier-I Bonds.
These Basel III compliant additional Tier-I bonds have been issued and allotted on a private placement basis, PNB said in another stock exchange filing.
The bonds have been raised at a coupon of 8.55 per cent per annum. There were ten allottees under the private placement. These bonds, which qualify as Tier-I capital, have a face value of ₹1 crore each.
PNB Board had earlier approved to raise ₹12,000 crore in 2023-24. Of the approved amount, PNB had raised ₹6,090 crore -- ₹3,000 crore in AT1 bonds and ₹3,090 crore in Tier-II capital -- by the end of September.
PNB is looking to close the current fiscal with profits of at least ₹6,000 crore, higher than the earlier guided level of ₹4,000 crore. PNB had recorded a profit of ₹3,000 crore in the first half of this fiscal.
In the second quarter ended September 30, 2023, PNB reported a 327 per cent Y-o-Y increase in net profit to ₹1,756 crore (against ₹411 crore). The bank’s net profit jumped 40 per cent Q-o-Q from ₹1,255 crore in the first quarter of this fiscal.
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