Shares of Punjab National Bank (PNB), a state-owned bank, are set to be in focus today after the bank successfully raised ₹5,000 crore through a Qualified Institutional Placement (QIP).
As per an official exchange filing, PNB issued about 48.19 crore shares at ₹103.75 each, which was 4.96% lower than the floor price of ₹109.16. The QIP was open for subscription from September 23 to September 26.
The bank received strong demand from institutional investors, with bids totaling ₹41,734 crore. This was 16.7 times the base issue size of ₹2,500 crore and 8.3 times the full issue size of ₹5,000 crore. Notable participants included CitiGroup Global Markets, BofA Securities Europe, SBI Contra Fund, Morgan Stanley Asia, and Goldman Sachs.
The money raised through this QIP will help improve PNB’s core equity ratio (CET-1) and overall capital adequacy.
Over the past year, PNB shares have given a 33% return, with an 11% rise year-to-date. In the June quarter, the bank reported a massive 159% jump in net profit, reaching ₹3,252 crore, while net interest income (NII) grew 10% to ₹10,476 crore. The total income for Q1 FY25 was ₹32,166 crore, a 12.5% increase compared to ₹28,579 crore in Q1 FY24. PNB’s gross non-performing assets (GNPA) improved significantly, dropping from 7.73% in June 2023 to 4.98% this year.
On Friday, PNB’s stock closed 1.37% higher at ₹108.76 on the NSE.
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