Punjab & Sind Bank vaults on fund raising plan

Punjab & Sind Bank rose 3.50% to Rs 11.23 after the bank said its board will consider raising funds on 12 November 2020.

The board will consider raising up to Rs 6000 crore by way of follow on public offer (FPO)/rights issue/qualified institutional placements (QIPs)/preferential issue or any other mode or a combination thereof in one or more tranches within a period of 12 months. This includes the previous approval to raise an amount of Rs 500 crore by way of QIP.

The board will also mull raising the authorized equity share capital of the bank from Rs 3000 crore to Rs 10000 crore. Further, the board will take on record the unaudited reviewed financial results for the quarter ended 30 September 2020, in the same meeting.

On a standalone basis, Punjab & Sind Bank reported net loss of Rs 116.89 crore in Q1 June 2020 compared with net loss of Rs 30.28 crore in Q1 June 2019. Net sales declined 12.7% to Rs 1,954.39 crore in Q1 June 2020 over Q1 June 2019.

The PSU lender's business segments include treasury operations, corporate/wholesale banking, retail banking and other banking operations. The bank offers international banking and domestic banking services. As of 30 September 2020, the Government of India held 83.06% stake in the bank.

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