Punjab & Sind Financial institution to boost Rs 2,000 cr through QIP this quarter: MD & CEO Swarup Kumar Saha

State-owned Punjab and Sind Financial institution plans to boost Rs 2,000 crore by way of Certified Institutional Placement (QIP) through the ongoing quarter, a high official of the financial institution mentioned. The financial institution has already appointed service provider bankers and authorized advisers for the proposed QIP, Punjab & Sind Financial institution managing director and CEO Swarup Kumar Saha informed PTI.

“With the QIP, the federal government holding within the financial institution would come down 3-4 per cent and capital adequacy ratio would rise on the finish of March 2025,” he mentioned.

The federal government of India holds 98.25 per cent stake in Punjab & Sind Financial institution on the finish of December 2024, he mentioned.

The federal government has prolonged the deadline for assembly minimal public shareholding norms for central public sector enterprises and public sector monetary establishments until August 2026.

Out of 12 public sector banks (PSBs), 5 are but to adjust to minimal public shareholding (MPS) norms and the federal government’s holding is past 75 per cent.

As per the Securities and Trade Board of India (Sebi), all listed corporations should keep an MPS of 25 per cent. The financial institution’s board had already authorised a capital mop up of Rs 10,000 crore, together with Rs 5,000 crore as infrastructure bonds, Rs 2,000 crore as QIP and the remaining Rs 3,000 crore as Tier-1 or Tier-2 bonds for the present fiscal. Final month, the financial institution raised Rs 3,000 crore from maiden infrastructure bonds aimed toward increasing infra lending.

Through the third quarter ended December, 2024, Punjab & Sind Financial institution reported a greater than two-fold bounce in its internet revenue to Rs 282 crore within the December 2024 quarter as unhealthy loans declined.

The financial institution had earned a internet revenue of Rs 114 crore in the identical quarter a 12 months in the past.

The financial institution’s whole revenue elevated to Rs 3,269 crore through the quarter below evaluation, as towards Rs 2,853 crore in the identical interval final 12 months, Punjab & Sind Financial institution mentioned in a regulatory submitting.

On the asset high quality entrance, gross non-performing belongings (NPAs) declined to three.83 per cent of the gross loans by the tip of December 2024, from 5.70 per cent a 12 months in the past.

Equally, internet NPAs or unhealthy loans got here right down to 1.25 per cent from 1.80 per cent on the finish of the third quarter of the earlier fiscal.