PSBs to raise Rs 17,800 cr to shore up capital

A slew of public sector banks, including Punjab National Bank and Union Bank, plan to raise a combined Rs 17,800 crore in one or more tranches this year through various instruments like bonds issue and follow on offer.
The country's second largest public sector lender Punjab National Bank will raise up to Rs 3,000 crore through Basel III compliant additional tier-I bonds.
The money raise will be subject to availability of headroom in one or more tranches, the bank said in a regulatory filing today.
Mumbai-headquartered Union Bank said its board in a meeting held today approved capital plan for 2017-18.

The bank will raise up to Rs 6,350 crore this fiscal in the form of core equity capital and/or additional tier I bonds or tier II bonds.
It will also raise up to Rs 4,950 crore through follow on public offer, rights issue/private issue, including qualified institutional placements or preferential allotment to government, Union Bank said in a filing.

Pune-based Bank of Maharashtra said its board of directors in a meeting next week will consider a proposal for raising of equity capital through FPO/rights issue/QIP up to Rs 2,000 crore.
Punjab & Sind Bank said it will raise Rs 1,500 crore in 2017-18 through private placement of shares in one or more tranches.

Shares of PNB closed 2.55 per cent up at Rs 168.90 on BSE; Union Bank up 6.91 per cent at Rs 170.90; Bank of Maharashtra Rs 36.50, up 5.49 per cent while Punjab & Sind Bank closed 4.48 per cent higher at Rs 64.15 apiece.