Shares of Punjab National Bank (PNB) plunged more than 8 percent 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 country's second-largest state-owned lender expects credit growth to pick up in the second half but it will be less than 5 percent 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 percent quarter-on-quarter to Rs 8,393.2 crore in Q2FY21.
Shares of PNB were trading 4.81 percent down at Rs 38.60 on BSE at 1035 hours.
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