PNB plans to raise up to Rs 5,000 cr from market to fund growth

The bank did not give say whether it would be raised by diluting government equity or issuing Additional Tier-1 bonds

Punjab National Bank today said it plans to raise up to Rs 5,000 crore equity capital from the markets to fund growth.

The public sector bank however did not give any indication as to whether it would be raised by diluting government equity or issuing Additional Tier-1 (AT1) bonds.

The decision in this regard would be taken in the board meeting on September 27, PNB said in a filing to the stock exchanges.

The bank would consider raising "common equity Tier capital up to Rs 5,000 crore as per Basel III requirements," it said.

PNB had reported over 12 per cent rise in net profit at Rs 343.40 crore for the quarter ended June 30, 2017.

Total income of the bank rose to Rs 14,468.14 crore in the said quarter from Rs 13,475.41 crore a year ago.

With regard to assets metrics, the bank's gross non- performing assets (NPAs) declined marginally to 13.66 per cent of gross advances as on June 30, 2017 from 13.75 per cent a year ago.