Punjab National Bank on Tuesday said it will raise Rs 7,000 crore through the qualified institutional placement (QIP) of shares by December that will boost its capital reserves.
“We have got approval from the central government to raise Rs 7,000 crore through QIP. We are in the process of finalising the book running lead manager. We are planning to go for QIP in the second or third week of December, depending on the road shows and the selection of the lead manager,” PNB managing director and CEO S.S. Mallikarjuna Rao said.
Rao expects the credit growth to pick up in the second half but it would be less than 5 per cent for the entire fiscal.
PNB has taken permission of its board to raise Rs 14, 000 crore in Tier-II bonds, additional Tier-I bonds and qualified institutional placement.
It has already raised Rs 2,500 crore in Tier-II bonds and will raise an additional Rs 1,500 crore in such bonds and Rs 3,000 crore in additional Tier-I bonds by this month. The remaining Rs 7,000 crore will be in qualified placements.
BoB U-turn
Bank of Baroda on Tuesday said it would not charge for basic banking services following a public outcry.
The announcement came just a day after the bank said it would begin charging customers for basic transactions, including deposits and withdrawals, above certain limits.
“In view of the prevailing Covid-19 pandemic and its impact on the economy, it has been decided to withdraw the above circular with immediate effect,” BoB said.
