Punjab National Bank (PNB) is planning a strategy to raise Rs 7,000 crore through share sales in the coming month. The bank has said that it is preparing to raise capital to strengthen the capital base for its business strategy. The second-largest bank in the government sector expects loan growth to improve in the second half of the current financial year. However, the bank believes that loan growth will be less than 5% during the entire financial year.

PNB Managing Director SS Mallikarjun Rao said on Tuesday that the bank had already obtained board permission to raise Rs 14,000 crore from Tier Two, Additional Tier A (AT-1) bonds and Eligible Institutional Planning (QIP). He said that out of this, Rs 4,000 crore belong to Tier II. Of this, Rs 2,500 crore has been raised, the remaining 1,500 crore and additional Rs 3,000 crore from AT-1 will be raised before 30 November. We have a strategy to raise Rs 7,000 crore from QIP in the second or third week of December.

Public sector Punjab National Bank's net profit grew 22% to Rs 620.81 crore in the second quarter of the current financial year. The bank had a net profit of Rs 507.05 crore in the same quarter a year ago. PNB informed the stock markets on Monday that the bank's total income for the July-September 2020 quarter stood at Rs 23,438.56 crore as against Rs 15,556.61 crore in the same period a year ago.

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