PNB To Raise Rs 5,000 Crore; Appoints Merchant Bankers
PNB has got board approval for a Rs 5,000 crore institutional share sale.
Punjab National Bank today said it has proposed to mop up Rs 5,000 crore from a share sale in next few months and has appointed merchant bankers for it.
“We have got board approval for QIP (Qualified Institutional Placement) to raise Rs 5,000 crore,” managing director and chief executive Sunil Mehta said in New Delhi. The bank has already appointed merchant bankers for share sale, he added.
The bank has not started work on consolidation plans as it has yet not found “value addition and synergy”. “Right now, we don't have any consolidation plan but if government offers us something then we may think of that,” Mehta said. The work on consolidation would start after recapitalisation as it is going to be a booster for capital adequacy, he added.
On selling non-core businesses, Mehta said, board has already approved part stake sale in PNB Housing Finance and entire stake in Principal PNB Asset Management Company and Principal Trustee Company Ltd. PNB has 39 percent stake in the PNB Housing Finance, 21.38 percent stake in the asset management company and 30 percent in the trustee company.
Non-core assets, we have lot of subsidiaries. We have about Rs 12,000 crore in liquid form and about Rs 5,000 crore in non-liquid formSunil Mehta, MD And CEO, Punjab National Bank
Mehta said, the bank aims to grow lending by 10 percent this fiscal. In the first half of the fiscal, the advances of the bank grew by about 8 percent.