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PNB to trim Govt stake to 51%
Punjab National Bank plans to make an equity offering next fiscal that could lead to offloading of 6.8% of the Government's stake, which currently stands at 57.8%.
Punjab National Bank , PNB plans to make an equity offering next fiscal that could lead to offloading of 6.8% of the Government's stake, which currently stands at 57.8%.
The bank had last tapped the capital market through a follow-on public offering in 2005.
PNB also plans to mop up additional tier-II capital of at least Rs 500 crore by March this year to fund its overseas expansion as well as business growth in the country.
It has already raised Rs 2,000 crore in the form of tier-II capital during the current fiscal, reports The Hindu Business Line.
"The board today approved a resolution that would enable the bank to raise tier-I equity and reduce the Government's stake from 57.8% to 51%," Mr Gupta said.
However, he added that it was an enabling resolution and that the investment committee of the bank would decide the timing and quantum of equity offering in due course.
The board has also given its nod to rais up to Rs 1,000 crore of tier-II capital, in addition to the Rs 2,000 crore already raised. "We need additional capital to fund our overseas expansion and meet growth requirements here. There are plans to set up subsidiaries and branches in at least four centres abroad."
The executive director, K Raghuraman, said that the bank has estimated a capital requirement of about Rs 200 crore for its UK subsidiary.
