Punjab & Sind Bank plans to raise Rs 250 via QIP in Q3

State-owned Punjab & Sind Bank is planning to raise Rs 250 crore through a share sale to institutional investors in the third quarter of the current fiscal year. This capital-raising initiative aims to achieve two objectives: raise capital and dilute the government's holding in the bank, which currently stands at 98.25 per cent.

Government approval  

The bank's managing director, Swarup Kumar Saha, stated that they have received approvals for the capital raising plan and that the government's nod is also in place for this initiative. The bank had sought approval from the government for a capital raise in May.

"The bank has got approvals for capital raising of Rs 250 crore via qualified institutional placement (QIP) in the next quarter," Punjab & Sind Bank managing director Swarup Kumar Saha told PTI.

Expansion plans 

Punjab & Sind Bank is also focusing on expanding its branch and ATM network, aiming to have 2,000 branches and as many ATMs across the country in the next three years. This expansion is expected to help mobilise low-cost deposits and increase the penetration of loan products. Additionally, the bank sees potential in its ATM network, as outside customers pay fees for using its ATMs.

"We are trying to build operational efficiency more so that I can reduce my costs and increase my fee income. We are moving to very granular areas like increasing ATM networks and improving the digital banking experience," Saha said.

The bank is also upgrading its core banking solution (CBS) to enhance its digital banking capabilities and operational efficiency.

(With PTI Inputs)