PNB looks to tap market in Q3FY21; may raise capital via FPO, rights issue

The government provided Rs 16,091 crore to PNB and Rs 1,666 crore to United Bank of India in September for enhancing the capital base of these two lenders

With the successful merger of Oriental Bank of Commerce and United Bank of India with itself, Punjab National Bank has started focussing on growth and planned a series of capital raising initiatives, including rights issue and FPO, in the third quarter this fiscal.

At the moment, the bank is adequately capitalised with the capital adequacy ratio of 14.04 per cent at the end of December 2019, PNB Managing Director S S Mallikarjuna Rao told PTI.

The government provided Rs 16,091 crore to PNB and Rs 1,666 crore to United Bank of India in September for enhancing the capital base of these two