Punjab National Bank (PNB) is planning to raise Rs 7,000 crore through share sale next month. The bank has said that it is preparing to raise capital to strengthen the capital base for its business plan.
The second-largest public sector bank expects credit growth to improve in the second half of the current financial year. However, the bank believes that loan growth will be less than five percent during the entire financial year. PNB Managing Director SS Mallikarjun Rao said in a virtual conversation with the media on Tuesday, 'The bank has already raised Rs 14,000 crore from Tier Two, Additional Tier A (AT-1) Bonds and Eligible Institutional Planning (QIP). Has received the approval of the Board.
He said, "Out of this, Rs.4,000 crores belong to Tier Two. Of this, Rs 2,500 crore has been raised, the remaining Rs 1,500 crore and additional Rs 3,000 crore from AT-1 will be raised before November 30. We plan to raise Rs 7,000 crore from QIP in the second or third week of December. ''