Punjab National Bank in ave to elevate Rs 3200 crore from share vending in the present quarter in order to expand its capital support. The bank has upraised around Rs 3788.04 crores from qualified institutional placement in December following which the support of the government decreased from 85.59 percent to 76.87 percent.
As it was mentioned by the Managing Director of Punjab National Bank, SS Mallikarjuna Rao that” Already Rs 4000 crore has been taken by us from Tier-II and Rs 3788.04 crores have been elevated from the Qualified institutional placement in December and another Rs 500 crore had been raised through AT 1 bond in the month of January. Imbibing faith in himself he ensured of even accumulating the left Rs 2500 crore under the Additional Tier-I bonds”.
It was even ensured that the present capital adequacy ratio is abundant in order to not only just take care of the requirements in the Month of March but also will be adequate for the upcoming fiscal year. Authorization had been taken by Punjab National Bank in order to elevate Rs 14,000 through a blend of debt and equity and decided to lift another Rs 3000 crore through AT-1 bonds, Rs 7000 crore from Qualified Institutional placement, and another Rs 4000 crore from Tier-II bonds.
Punjab National Bank had even ended some of its non-core assets counting together the sale of its holdings in the UTI Mutual Fund. It even anticipates deploying Rs 500 crore from the bargaining of some of its real assets in the month of June 2021. It had stated a freestanding operating profit of Rs 506.03 crore in the month of December on account of a decrease in the Non Performing Assets. Quoting his perspective Rao mentioned that Punjab National Bank anticipates closing the current financial year with a net profit of around Rs 2000 crore.