Synopsis: Punjab & Sind Bank intends to raise ₹2,000 crore through Qualified Institutional Placement (QIP) in the latter half of the fiscal year to enhance its business capabilities. This initiative, approved by the bank's board and scheduled for merchant banker onboarding by August, aims to strengthen its Capital Adequacy Ratio and reduce government ownership.
State-owned Punjab & Sind Bank plans to raise ₹2,000 crore in the second half of this fiscal year through Qualified Institutional Placement (QIP) to support business growth.
"The board has already given approval, and merchant bankers should be onboarded by August," Punjab & Sind Bank managing director and CEO Swarup Kumar Saha told PTI.
The fundraising could be completed in the second or third quarter, depending on market conditions.
Saha mentioned that the QIP would help improve the bank's Capital Adequacy Ratio, which stood at 17.10 percent at the end of March 2024, and would also help reduce the government's stake in the bank, currently at 98.25 percent.
Regarding loan growth, Saha said the bank expects its asset book to grow by 12-14 percent this fiscal year, with retail, agriculture, and MSME (RAM) sectors projected to grow by 15-18 percent.
On the deposit side, liabilities are expected to grow between 8 and 10 percent.
The bank has taken several customer-centric initiatives to improve satisfaction levels, including transforming 50 branches into model or smart branches.
Additionally, the bank has introduced the PSB Pink debit card powered by RuPay for women, offering various benefits.
Furthermore, the bank has launched demat services through wealth-tech partner Fisdom, allowing customers to invest in the equity market and purchase mutual funds.
The bank also rolled out various digital offerings through its omnichannel PSB UNiC App, providing secure and hassle-free banking services.
These include opening savings accounts via video KYC, Bulk NEFT/RTGS, free CIC credit score access, and UNiC App registration through Aadhaar OTP.
Saha highlighted that these new initiatives demonstrate the bank's commitment to making a positive societal impact and creating a more sustainable future.
In conclusion, Punjab & Sind Bank's plan to raise ₹2,000 crore through QIP in the second half of this fiscal year aims to bolster business growth and improve the bank's Capital Adequacy Ratio.
The initiative, supported by the bank's board, will also help reduce the government's substantial stake.
With a projected asset growth of 12-14 percent and customer-centric innovations such as smart branches, the PSB Pink debit card, and enhanced digital services, the bank is poised to enhance customer satisfaction and contribute to a sustainable future.
