A slew of public sector banks, including Punjab National BankBSE 2.55 % and Union Bank, plan to raise a combined Rs 17,800 crore in one or more tranches this year through various instruments like bonds issue and follow-on offer.
The country’s second largest public sector lender Punjab National Bank will raise up to Rs 3,000 crore through Basel III compliant additional tier-I bonds.
The money raise will be subject to availability of headroom in one or more tranches, the bank said in a regulatory filing today.
Mumbai-headquartered Union Bank said its board in a meeting held today approved capital plan for 2017-18.
The bank will raise up to Rs 6,350 crore this fiscal in the form of core equity capital and/or additional tier-I bonds or tier II bonds.
It will also raise up to Rs 4,950 crore through follow-on public offer, rights issue/private issue, including qualified institutional placements or preferential allotment to government, Union Bank said in a filing.
Pune-based Bank of MaharashtraBSE 5.49 % said its board of directors in a meeting next week will consider a proposal for raising of equity capital through FPO/rights issue/QIP up to Rs 2,000 crore.
Punjab & Sind Bank said it will raise Rs 1,500 crore in 2017-18 through private placement of shares in one or more tranches.
Shares of PNB closed 2.55 per cent up at Rs 168.90 on BSE; Union Bank up 6.91 per cent at Rs 170.90; Bank of Maharashtra Rs 36.50, up 5.49 per cent while Punjab & Sind Bank closed 4.48 per cent higher at Rs 64.15 apiece.
Source: Economic Times