Punjab & Sind Bank Looks To Raise Rs 250 Via QIP In Q3
It will help achieve the twin objectives of capital raising and dilution of the government's holding in the bank.
State-owned Punjab & Sind Bank plans to raise Rs 250 crore through share sales to institutional investors in the third quarter of the current fiscal year.
"The bank has got approvals for capital raising of Rs 250 crore via Qualified Institutional Placement (QIP) in the next quarter," Punjab & Sind Bank managing director Swarup Kumar Saha told PTI.
It will help achieve the twin objectives of capital raising and dilution of the government's holding in the bank, he said.
The government of India holds a 98.25% stake in the bank, which was listed on the stock exchanges in 2010.
He said that the government's nod is also in place for the capital raising. The bank had written to the center in May seeking its approval for capital raising.
As part of a strategy to increase touch points and brand visibility, Saha said the bank is aiming for 2,000 branches and as many ATMs in the country in the next three years.
The addition of branches would help mobilize low-cost deposits and also increase penetration of loan products, he said.
'We are trying to build operational efficiency more so that I can reduce my costs and increase my fee income. We are moving to very granular areas like increasing ATM networks and improving the digital banking experience,' Saha said.
He said the ATM network can itself be a profit center because an outside customer pays about Rs 17 per transaction for the use of an ATM.
The bank is in the process of upgrading its core banking solution which would help the digital journey much better and also bring in efficiency, he said.