PNB gets shareholders’ nod to raise Rs 5,000 crore

Published On: 05, Dec 2017 | Source: financialexpress.com

Punjab National Bank (PNB) on Monday sought shareholders’ nod to raise Rs 5,000 crore through various means, including a qualified institutional placement (QIP) or a rights issue. The bank said in a regulatory filing that the agenda of the extraordinary general meeting (EGM) contained “raising of common equity Tier I capital of the bank in aggregating not exceeding Rs 5,000 crore including premium by way of FPO (follow on public offer)/QIP(qualified institutional placement)/rights issue/ESOP (employees stock option plan) and/or any other mode or combination(s) thereof, as may be decided by the board”. PNB said in the statement that its MD & CEO Sunil Mehta informed shareholders on Monday that the voting results will be declared after a consolidated scrutiniser’s report, of the votes cast in the poll along with the votes cast in remote e-voting, is received. “The same shall be submitted to the stock exchanges and also placed on the website of the bank and on the website of NSE/BSE within the statutory time limit,” he added. The bank reported a net profit of Rs 561 crore in Q2, up 2% from the same period last year. Its capital adequacy ratio under Basel III norms stood at 11.56%, down from 11.64% in the sequential quarter. The government of India held a 65% stake in PNB at the end of the September quarter, data from BSE showed. The PNB stock rose 1% to close at Rs 173.10 on the BSE on Monday. In June, State Bank of India (SBI) had raised Rs 15,000 crore by selling Rs 52.2-crore shares at Rs 287.25 apiece.