Shares of Punjab National Bank (PNB) slipped nearly 8% in the morning trade on BSE on December 16, a day after the lender’s qualified institutions placement (QIP) opened.
PNB’s QIP opened on December 15 with the floor price set at Rs 37.35 per share. The bank aims to raise Rs 7,000 crore through the offer. The Capital Raising Committee of the bank, at a meeting held on Tuesday, authorised the opening of the QIP issue and approved the floor price.
In the past month, the stock has run up strongly, rallying nearly 40% till Monday.
India’s second-largest state-owned lender expects credit growth to pick up in the second half but it will be less than 5% for the entire fiscal.
The bank has taken approval from the board for raising Rs 14,000 crore by way of Tier II, Additional Tier 1 (AT-1) bonds and QIP.
The bank sequentially doubled its net profit to Rs 620.8 crore in the September quarter despite elevated provisions, supported by net interest income and pre-provision operating profit (PPoP).
Net interest income, the difference between interest earned and interest expended, increased 24.4% quarter-on-quarter to Rs 8,393.2 crore in Q2FY21.
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