The state-owned lender Punjab National Bank (PNB) announced on Friday, September 28, that it had raised Rs 5,000 crore via a qualified institutional placement (QIP).
It stated that the bank's QIP issue was available for subscription from September 23 to September 26, 2024.
'The bank received bids totalling Rs 41,734 crore for the QIP issue from Qualified Institutional Buyers (QIBs), which includes mutual funds, foreign portfolio investors (FPIs), insurance companies, etc., which is 16.7 times the base issue size of Rs 2,500 crore and 8.3 times the total issue size of Rs 5,000 crore,' the bank further added.
Issue price and allotment of the QIP
About 48.19 crore equity shares were allotted by the bank at an issue price of Rs 103.75 per share, which was 4.96 per cent less than the floor price of Rs 109.16 per share, according to a statement from PNB.
It further stated that the bank's total capital adequacy ratio and its CET-1 ratio will both be improved by the capital raised through the QIP issue.
PNB Q1 FY25 results
Net profit and interest income
For the quarter ending June 30, 2024 (Q1 FY25), PNB reported a more than two-fold increase in net profit at Rs 3,252 crore, aided by a decrease in bad loans and an improvement in interest income.
In the same quarter last year, the lender's interest income increased to Rs 28,556 crore from Rs 25,145 crore. For the same period last year, the state-owned bank reported a net profit of Rs 1,255 crore.
Revenue Q1 FY25
According to a regulatory filing by PNB, total income for the quarter increased to Rs 32,166 crore from Rs 28,579 crore.
Gross and net NPA
In June 2024, gross non-performing assets (NPAs) decreased from 7.73 per cent of gross advances in the same quarter the previous year to 4.98 per cent of gross advances. Moreover, net NPAs decreased from 1.98 per cent to 0.60 per cent.
Share performance
The shares of PNB Bank were shuttered at Rs 108.76 per share on the national stock exchange.
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