In a strategic move to bolster its financial strength, Punjab National Bank (PNB) on Thursday (December 28) announced its approval for raising equity capital of up to ₹7,500 crore during the fiscal year 2024-25. The decision was made during the Board of Directors meeting held recently.
"...the exchange is hereby informed that the Board of Directors of the Bank in its meeting held today, has approved the proposal for raising of equity capital for an amount aggregating upto Rs 7500 crore in one or more tranches during FY 2024-25 through Qualified Institutions Placement (QIP)/Follow on Public Offer (FPO)," the bank said.
The capital infusion is set to occur in one or more tranches and will be executed through various channels, including Qualified Institutions Placement (QIP), Follow-up Public Offer (FPO), or any other permissible mode, either individually or in combination.
The decision aligns with the regulatory framework, adhering to the provisions of applicable Acts, Regulations, and Guidelines, pending receipt of necessary approvals, Punjab National Bank said in a regulatory filing.
The bank reported a 327% year-on-year (YoY) rise in net profit at ₹1,756 crore for the September quarter compared with ₹411.27 crore in the corresponding quarter of the last financial year.
The bank's net interest income (NII) also exceeded expectations, standing at ₹9,923 crore, compared to CNBC-TV18's poll of ₹9,491.8 crore. PNB's provisions for the quarter amounted to ₹3,444, showing a reduction compared to the previous quarter and the same period the previous year.
The gross non-performing assets (NPAs) ratio dropped to 6.96% as of September 30, down from 7.73% in the previous quarter, and significantly lower than the 10.48% recorded in the same period of the previous financial year. In absolute terms, gross NPAs were reported at ₹65,563.12 crore by the end of Q2FY24.
Shares of Punjab National Bank ended at ₹95.63, up by ₹3.86, or 4.21% on the BSE.
