• Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
Cartographeum
No Result
View All Result

No need to approach govt. for capital; bank to raise funds from market: PNB MD

Juliet Woodard by Juliet Woodard
August 24, 2020
Home Business
Share on FacebookShare on Twitter

The bank has shareholders’ approval for raising ₹14,000 crore, comprising ₹7,000 crore of the equity alone, from the market to meet COVID-related impact and finance growth: MD

The country’s second largest state-owned lender Punjab National Bank on Monday said it does not envisage approaching the government for capital support rather it intends to raise funds from the market, which seems to have appetite for the public sector banking space.The bank has shareholders’ approval for raising ₹14,000 crore, comprising ₹7,000 crore of the equity alone, from the market to meet COVID-related impact and finance growth, Punjab National Bank (PNB) Managing Director S.S. Mallikarjuna Rao said in a virtual interaction with reporters.Also read | More than 1,700 wilful defaulters owed ₹37,020 crore to PNB“As on today, it does not appear (approach government for capital). If you look at market appetite also there is intent to contribute to public sector space in general,” he said.This is evident from the recent issuance of Tier II bonds of Bank of Baroda and PNB as coupon rates were reasonable, he said.“There is an appetite in the market. So, unless we test in the market, it would not be appropriate for us to think of government for contribution…We are confident of going to the market with respect to Tier II and Tier I bonds during Q2 and Q3 while we are looking at the end of Q3 or during Q4 for QIP (qualified institutional placement),” he said.Asked about the subdued share price of the bank, he said the government has 85.5% stake in the bank leaving less than 15% for the market to trade.Shares of the bank were hovering around ₹65 level during the last week of August 2019 as compared to ₹35.30 on Monday on the BSE.“The government shareholding still remains at 85.5%. In spite of showing better performance, the kind of stock available in the market is very less, the possibility of price moving up aggressively is not expected unless the stake in the market increases,” he said.Price to book value is roughly about 59-60% currently.On the other avenues of fund mobilisation, he said the bank is looking to raise ₹500 crore from the sale of real estate during the current fiscal.Mr. Rao said that the bank is expecting ₹6,000-8,000 crore from the resolution cases pending before the National Company Law Tribunal.He also said the bank has decided to infuse ₹600 crore in its mortgage arm PNB Housing Finance through preferential issue or a rights issue subject to the RBI’s approval.Asked about the outlook for the current financial year, Mr. Rao said the bank aims to earn moderate profit every quarter.“We like to be in profit in every quarter though moderately. We do not like to have high profit because we want to strengthen the balance sheet by creating more and more provisions by showing marginal profits. For June quarter the bank posted (profit of) ₹308 crore, remaining quarters are on the similar lines,” he said.

You have reached your limit for free articles this month.
To get full access, please subscribe.
Already have an account ? Sign in

Show Less Plan

Subscription Benefits Include

Today’s Paper
Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Faster pages
Move smoothly between articles as our pages load instantly.

Unlimited Access
Enjoy reading as many articles as you wish without any limitations.

Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.

Personalised recommendations
A select list of articles that match your interests and tastes.

Briefing
We brief you on the latest and most important developments, three times a day.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

Tags: capitalcovid impactmarketPNBprofitpunjab national bankS.S. Mallikarjuna Raoshareholders
Juliet Woodard

Juliet Woodard

Next Post
TikTok Sued by Vietnamese Tech Firm Alleging Copyright Infringement

TikTok Sued by Vietnamese Tech Firm Alleging Copyright Infringement

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

TicWatch Pro 3 GPS Smartwatch With Snapdragon Wear 4100 SoC Launched in India

TicWatch Pro 3 GPS Smartwatch With Snapdragon Wear 4100 SoC Launched in India

October 20, 2020
AmazonBasics Appliances, Electronics Flagged as Potentially Dangerous: Report

Amazon Accuses Future Group of Insider Trading in New Push to Block Reliance Deal

November 11, 2020

Trending.

Rock Legend Gene Simmons Kisses His California Estate And High Taxes Goodbye

Rock Legend Gene Simmons Kisses His California Estate And High Taxes Goodbye

November 1, 2020
Brookfield to buy 18% of RMZ’s assets for $2 billion

Brookfield to buy 18% of RMZ’s assets for $2 billion

October 19, 2020
Navigating Online Marketplaces? 12 Tips For Real Estate Newbies

Navigating Online Marketplaces? 12 Tips For Real Estate Newbies

January 13, 2021
Left slams RBI proposal to give banking licences to corporates

Left slams RBI proposal to give banking licences to corporates

November 24, 2020
Gold slips ₹ 248, silver declines ₹ 853

Gold slips ₹ 248, silver declines ₹ 853

November 21, 2020

Cartographeum brings you the latest information about Tech,Real Estate & Business.

Follow Us

Categories

  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
  • Uncategorized

Tags

Amazon Apple Watch 2 Best iPhone 7 deals Bombay stock exchange BSE Business Buying Guides china closing trade coronavirus COVID-19 currency dollar rate economy Finance Ministry foreign exchange forex gold india indian economy Indian stock market Industry iOS 10 lockdown luxury homes market and exchange markets nifty Nirmala Sitharaman NSE oil pandemic Playstation 4 Pro rbi real estate Reserve Bank of India rupee rupee rate Rupee value rupee vs dollar sensex Sillicon Valley stock exchange Stocks USD

Recent News

Dwyane Wade And Gabrielle Union Bring Los Angeles Home Back To Market At $6 Million

Dwyane Wade And Gabrielle Union Bring Los Angeles Home Back To Market At $6 Million

January 15, 2021
The Wealthy Are Moving To These 5 U.S. Mountain Towns

The Wealthy Are Moving To These 5 U.S. Mountain Towns

January 15, 2021
  • Privacy Policy
  • About Us
  • Contact Us

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Review
  • Computers
  • Gear

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.