PNB to consider fund raising on 9 July

Punjab National Bank (PNB) said that its board will meet on Thursday (9 July 2020) to consider a proposal to raise capital through a mix of both equity and debt.

The board will consider proposal for raising capital through issue of Basel-III-compliant tier-1 bonds, tier-2 bonds and equity shares by way of private placement, qualified institutions placement, follow-on public offering, rights issue or any other mode or through a combination, it said. Following the board approval, the resolution will be put for the shareholders' nod, the bank added.

Further, the board will clear opening balance sheet of the amalgamated bank as on 1 April, which is post amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank.

 

The scrip fell 1.08% to Rs 36.65 on the BSE. It traded in the range of Rs 36.45 and Rs 37.50 so far during the day.

The stock is currently trading below its 200-day simple moving average placed at 49.06.

On a year-to-date (YTD) basis, shares of PNB have fallen 43.12% while the benchmark Sensex has lost 11.46%.

The government-owned lender reported a net loss of Rs 697.20 crore in Q4 March 2020, lower than net loss of Rs 4749.64 crore in Q4 March 2019. Total income rose 11.3% year-on-year (YoY) to Rs 16,388.32 crore in Q4 FY20.

Punjab National Bank is a public sector bank. The Government of India held 83.19% stake in the bank as on 31 March 2020.

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