Punjab and Sind Bank sanctions ₹750 Cr bond fundraising

Punjab and Sind Bank sanctions ₹750 Cr bond fundraising

Punjab and Sind Bank’s Fundraising Approval through Bonds Sale

A important development is that the board of directors of Punjab and Sind Bank has approved a capital-raising plan that would involve the sale of bonds totaling 750 crore. According to the bank’s regulatory filing, this action is intended to strengthen the bank’s financial condition and support its long-term growth objectives.

The extra Tier-I bonds will be issued in one or more tranches over the course of the following year in order to raise the 750 crore in funding that has been authorised.

“During the meeting held on June 11, 2023, the bank’s board approved the capital-raising endeavour of up to 750 crore through the issuance of Base-III compliant Additional Tier-I Bonds or Tier-II Bonds within a period of 12 months,” said Punjab and Sind Bank in its regulatory filing.

The bank’s fourth-quarter results for the fiscal year 2022–2023 showed a noteworthy double-digit increase in net profit of 32.03% YoY, totaling 456.99 crore. Net interest income (NII), which fell by 1.97% YoY and 15.05% QoQ to reach 683.78 crore during the same period, experienced a small fall.

Additionally, the provision and contingencies loss for Punjab and Sind Bank significantly decreased in the fourth quarter of FY23, coming in at 57.12 crore as opposed to 131.56 crore in the fourth quarter of FY22 and 207.46 crore in the third quarter of FY23.

Gross non-performing assets (GNPA) for the bank showed a favourable trend, down from 12.17% in Q4FY22 and 8.36% in Q3FY23 to 6.97% in Q4FY23. Net non-performing assets (NPA) also showed improvement, falling from 2.02% in Q3FY23 to 1.84% in the quarter under review from 2.74% in Q4FY22.

In addition, the Punjab and Sind Bank’s financial report shows that, as of March 2023, it had achieved its goals for Priority Sector Advance, which accounted for 54.99% of ANBC (Adjusted Net Bank Credit), and Agriculture Advance, which represented 20.67% of ANBC. These numbers are higher than the 40% and 18% regulation objectives, respectively.

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The bank’s loan assistance for micro businesses also performed admirably, exceeding the statutory objective of 7.50% to reach 14.31% of ANBC as of March 31, 2023.

As a result, the share price of Punjab and Sind Bank increased marginally by 0.47% to reach 31.95 on the Bombay Stock Exchange (BSE).

Punjab and Sind Bank seeks to strengthen its capital base and use the cash to support its development goals in the near future by successfully obtaining 750 crore through bond fundraising.

About Punjab and Sind Bank:

Indian public sector bank Punjab & Sind Bank has its main office in New Delhi. The bank has 1553 branches spread out over India as of 18 April 2023, 635 of which are in the state of Punjab, and 25 zonal offices spread out around the country.

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