PNB shares in focus after the company raised Rs 5,000 crore through QIP

Punjab National Bank has successfully raised Rs 5,000 crore through a qualified institutional placement, allocating about 48.19 crore equity shares at Rs 103.75 per share. The issue saw significant interest from institutional buyers, with bids totaling Rs 41,734 crore. This capital will enhance the bank's CET-1 Ratio and overall Capital Adequacy Ratio.

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Shares of state-owned Punjab National Bank ( PNB ) will be in focus in today's trade following its successful completion of a qualified institutional placement, where it has raised Rs 5,000 crore According to an exchange filing, the bank has allocated about 48.19 crore equity shares at an issue price of Rs 103.75 per share, which was at a discount of 4.

96% to the floor price of Rs 109.16 per share. The bank's QIP issue was open for subscription from September 23-26.



The bank received bids from qualified institutional buyers (QIBs) including mutual funds, foreign portfolio investors (FPIs), and insurance companies to the tune of Rs 41,734 crore, which is 16.7 times the base issue size of Rs 2,500 crore and 8.3 times the total issue size of Rs 5,000 crore.

Among the funds that participated in the QIP issue were CitiGroup Global Markets Mauritius, BofA Securities Europe SA, SBI Contra Fund, Morgan Stanley Asia (Singapore) Pte and Goldman Sachs (Singapore) Pte. The amount of capital raised through the QIP issue will augment the bank's CET-1 Ratio and the overall Capital Adequacy Ratio. Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.

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The stock's 1-year returns are at par with the Nifty PSU Bank index and Nifty, while it was higher than Nifty Bank, which has delivered returns of 20% in the said period. In the recent June quarter, PNB reported a 159% year-on-year (YoY) jump in its net profit at Rs 3252 crore, while its net interest income (NII) rose 10% YoY to Rs 10,476 crore Total Income of the bank was booked at Rs 32,166 crore for Q1 FY25 from Rs 28,579 crore for Q1 FY24, recording a growth of 12.5%.

The GNPA ratio for the quarter has improved by 275 bps on a YoY basis to 4.98% from 7.73% in June 2023, while its NNPA ratio was up by 138 bps YoY to 0.

60%. On Friday, PNB shares closed 1.37% higher at Rs 108.

76 on the NSE. (You can now subscribe to our ETMarkets WhatsApp channel ).