PNB Elevates Staggering Capital in Crores; Discovers 5-Year Stock Returns

PNB Elevates Staggering Capital in Crores

PNB said in a statement that the bank allocated about 48.19 crore equity shares at a price of ₹103.75 per share, which was at a discount of 4.96% to the floor price of ₹109.16 per share. 

PNB said it has raised ₹5,000 crore through a qualified institutional placement (QIP). PNB said in a statement that at a discount of 4.96% to the floor price of ₹109.16 per share, the bank allocated about 48.19 crore equity shares at an issue price of ₹103.75 per share. Also adding that the bank's QIP issue was open for subscription from September 23 to 26, 2024.

PNB also said, "the bank received bids from Qualified Institutional Buyers (QIBs), including mutual funds, foreign portfolio investors (FPIs), insurance companies, etc., to the tune of ₹41,734 crore for the QIP issue, which is 16.7 times the base issue size of ₹2,500 crore and 8.3 times the total issue size of ₹5,000 crore".

It also added that the amount of capital raised through the QIP issue will expand the bank's CET-1 ratio and the overall capital competence ratio.

Helped by a decline in bad loans and an improvement in interest income, the bank reported a more than two-fold jump in net profit at ₹3,252 crore for the quarter ended June 30, 2024 (Q1 FY25).

 For the year-ago period, the state-owned bank posted a net profit of ₹1,255 crore. PNB said in a regulatory filing that the total income in the quarter rose to ₹32,166 crore from ₹28,579 crore. A year ago, the lender's interest income also increased to ₹28,556 crore from ₹25,145 crore in the same quarter. The bank announced a net profit of ₹3,976 crore in the quarter under review as against ₹1,342 crore a year ago, on a mutual basis.