In a strategic move to fortify its financial position, Punjab National Bank (PNB) has announced the approval for raising equity capital up to ₹7,500 crore during the fiscal year 2024-25. The decision was taken during a recent Board of Directors meeting. The capital infusion is planned in one or more tranches.
It will be executed through various channels, including Qualified Institutions Placement (QIP), Follow-up Public Offer (FPO), or any other permissible mode. The move aligns with regulatory requirements, following the provisions of applicable Acts, Regulations, and Guidelines, pending necessary approvals.
PNB reported a significant 327% year-on-year rise in net profit at ₹1,756 crore for the September quarter, surpassing the ₹411.27 crore recorded in the corresponding quarter of the previous financial year. The net interest income (NII) also exceeded expectations, standing at ₹9,923 crore, compared to the estimated ₹9,491.8 crore. Provisions for the quarter amounted to ₹3,444, reflecting a reduction compared to the previous quarter and the same period the previous year.
The gross non-performing assets (NPAs) ratio dropped to 6.96% as of September 30, down from 7.73% in the previous quarter and significantly lower than the 10.48% recorded in the same period of the previous financial year. In absolute terms, gross NPAs were reported at ₹65,563.12 crore by the end of Q2FY24. The positive financial indicators contributed to a 4.21% increase in PNB’s shares, closing at ₹95.63 on the BSE.
