NE BUSINESS BUREAU
NEW DELHI, FEB 6
State-owned Punjab National Bank on Saturday said it plans to raise Rs 3,200 crore from share sale during the current quarter to enhance its capital base.
The bank has raised Rs 3,788.04 crore from qualified institutional placement (QIP) in December following which the government holding in the bank came down from 85.59 percent to 76.87 percent.
The bank had taken approval for raising Rs 14,000 crore through a mix of equity and debt. As per the plan, the bank decided to raise Rs Rs 3,000 crore from AT-1 bonds, Rs 4,000 crore from Tier II bonds, and Rs 7,000 crore from QIP.
“We have already taken Rs 4,000 crore from Tier-II and Rs 3,788 crore we have taken through QIP as at the end of December. In January, we have also taken AT-1 of another Rs 500 crore. So I am very confident that the remaining Rs 2,500 crore of under Additional Tier-1 bonds will be garnered from the market before March 31,” PNB Managing Director S S Mallikarjuna Rao said.
Talking to the media after the result, he said, “We are also actively looking at going for the QIP again for the remaining Rs 3,200 crore to be acquired from the market at an appropriate time…it could be in this fiscal also.”
However, he said, the current level of capital adequacy ratio is sufficient to take care of not only the requirement in March 2021 but also during the next financial year.
Besides, Rao said, the bank has sold some of the non-core assets including the sale of its holding in UTI Mutual Fund.
Going forwards, he said, the bank expects to mobilise Rs 500 crore from the sale of real assets by June 2021.
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Q3 results: Net profit at Rs 506 crore, NII at Rs 8,313 crore
State-owned Punjab National Bankon Friday reported a net profit of Rs 506 crore for the quarter ended December 31, 2020 (Q3FY21). Sequentially, the profit declined 18.5 percent. The lender had posted a profit of Rs 621 crore in the previous quarter (Q2FY21), and a standalone loss of Rs 492.28 crore during the corresponding period last year (Q3FY20).
The Delhi-based lender’s net interest income – the difference between interest earned through lending and interest paid to depositors – came in at Rs 8,313 crore for the period under review. The NII had been Rs 8,393 crore during the September quarter. It had been Rs 4,355 crore during the same period a year earlier (Q3FY20)
The bank’s gross non-performing assets (NPAs) reduced to 12.99 percent for the December quarter of this financial year, compared with 13.43 percent in the previous quarter. Meanwhile, its net non-performing assets (NPAs) stood at 4.03 percent.
The total income of the lender came in at Rs 23,298 crore during the quarter, against Rs 15,967 crore in the same period a year earlier. Its total expenses in Q3FY21, meanwhile, stood at Rs 16,907 crore.
