Punjab & Sindh Bank looks to raise ₹500 crore via QIP route1 min read . Updated: 03 Dec 2019, 05:45 PM IST
- Punjab & Sind Bank on Wednesday reported a net loss of ₹468.73 crore for the second quarter ended September 30
- The provisions and contingencies of Punjab & Sind Bank surged 63.81% to ₹972.62 crore as compared to ₹593.73 crore made in the same quarter a year-ago
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.