Punjab & Sind Bank: Strategic Moves in QIP and Infrastructure Funding

Punjab & Sind Bank plans to raise Rs 2,000 crore through Qualified Institutional Placement this quarter. The move is expected to reduce the government's stake and enhance the bank's capital adequacy ratio. The bank has already raised Rs 3,000 crore through infrastructure bonds aimed at expanding its lending capacity.

Punjab & Sind Bank aims to expand its financial footprint by raising Rs 2,000 crore through a Qualified Institutional Placement (QIP) in the ongoing quarter, according to managing director and CEO Swarup Kumar Saha.

This strategic move is set to reduce the government's stake in the bank by 3-4% and improve the capital adequacy ratio by March 2025. Currently, the Government of India holds a 98.25% stake.

Alongside this, the bank recently secured Rs 3,000 crore from infrastructure bonds to bolster its lending capabilities, demonstrating a significant increase in net profit for the December 2024 quarter.

(With inputs from agencies.)