Home >Companies >News >Punjab & Sindh Bank looks to raise 500 crore via QIP route

NEW DELHI : The board of public sector lender Punjab & Sind Bank will meet on 6 December to consider the lender’s proposal to raise up to 500 crore through a qualified institutional placement (QIP).

QIP is a tool used by listed companies to sell shares, debentures, or any securities, other than warrants that are convertible into stocks, to a qualified institutional buyer such as mutual funds and foreign institutions.

Earlier on 27 September, the public sector lender had received capital infusion 787 crore from the government.

On Tuesday, shares of the bank closed 1.5% higher at 20 on the BSE.

Punjab & Sind Bank’s net loss widened to 468.73 crore in the quarter ended September from a loss of 109.23 crore a year ago on account of higher provisioning.

The bank’s capital adequacy ratio was up at 11.68% in Q2 from 10.66% in the same quarter of last year. Net non-performing assets (NPAs) increased 7.07% from 5.25% in the same quarter of the previous year.

Provisions and contingencies of Punjab & Sind Bank surged 63.8% year-on-year to 972.62 crore as compared to 593.73 crore made in the same quarter a year ago. The bank's provisions, stood at 334.53 crore in the June quarter.

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