Punjab & Sind Bank to Raise Rs 2,000 Crore via QIP for Business Growth

State-owned Punjab & Sind Bank aims to raise Rs 2,000 crore in the latter half of this fiscal year via Qualified Institutional Placement (QIP) to support business expansion. The bank's board has approved the plan, and merchant bankers will be onboarded by August. The move is expected to enhance the bank's Capital Adequacy Ratio.

State-owned Punjab & Sind Bank is set to raise Rs 2,000 crore in the second half of this fiscal year through Qualified Institutional Placement (QIP) to drive business growth.

The bank's board has given the green light, with merchant bankers slated to come on board by August, Managing Director and CEO Swarup Kumar Saha informed PTI.

Depending on market conditions, the fundraising effort may conclude in the second or third quarter. This QIP initiative aims to boost the bank's Capital Adequacy Ratio, which stood at 17.10 per cent at the end of March 2024. Additionally, it will contribute to reducing the government's holding in the bank from the current 98.25 per cent stake.

Discussing loan growth outlook, Saha projected the bank's asset book to expand by 12-14 per cent, particularly in retail, agriculture, and MSME sectors, which are expected to grow by 15-18 per cent. On the deposit side, he anticipates liabilities to increase by 8-10 per cent this financial year.

The bank is also rolling out various customer-centric initiatives, including transforming 50 branches into smart branches, launching PSB Pink debit cards for women, offering demat services through Fisdom, and enhancing its digital services via the PSB UNiC App.

These efforts underscore the bank's commitment to societal impact and a sustainable future.

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