Punjab and Sind Bank share price gains as it approves ₹750-crore fund raising

Punjab and Sind Bank share price gained ₹0.42, or 1.31%, in early trade as the bank approved raising funds worth up to ₹750-crore through bonds in one or more tranches. The Punjab and Sind Bank stock opened the day at ₹32.01 versus the previous close of ₹31.97, then further gained to hit a high of ₹32.66.

At the time of writing this copy, the Punjab and Sind Bank share price was at ₹32.39.

“The Board of the Bank in its meeting held today i.e. on 12 June, 2023 has approved raising or capital up to an amount of Rs.750 erore through issuance of Basel-III compliant Additional Tier-I Bonds or Tier-I I Bonds in one or more tranches within a period of 12 months,” Punjab and Sind Bank informed the exchanges in a filling.

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The bank had last week said “13th Annual General Meeting (AGM) of Shareholders of Punjab & Sind Bank will be held through Video Conferencing (VC) / or Other Audio-Visual Means (OAVM) on Tuesday, 11th July, 2023 at 11.00 a.m”. 

The bank also informed the exchanges in the same filing that it has set the record date for dividend as July 4, 2023. The book closure period for dividend and AGM will be from July 05, 2023 to July 11, 2023 (both days inclusive).

Punjab & Sind Bank showed a mixed performance in the fourth quarter of FY23. The lender posted double-digit growth of 32.03% YoY and 22.43% QoQ in net profit to ₹456.99 crore in Q4FY23. On the contrary, the bank's net interest income (NII) dipped by 1.97% YoY and sharply by 15.05% QoQ to ₹683.78 crore in the quarter.

The growth in net profit was alongside narrowing in provision losses.

In Q4FY23, the bank's provision and contingencies loss narrowed steeply to ₹57.12 crore as against ₹131.56 crore in Q4FY22 and ₹207.46 crore in Q3FY23.