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Expect to raise money via equity by next week, says Punjab National Bank

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“We have taken approval from board for raising around Rs 14,000 crore,” said SS Mallikarjuna Rao, MD and CEO, Punjab National Bank (PNB) in an interview with CNBC-TV18.

“We have taken approval from board for raising around Rs 14,000 crore,” said SS Mallikarjuna Rao, MD and CEO, Punjab National Bank (PNB) in an interview with CNBC-TV18. “..comprising Rs 4,000 crore in tier-II, Rs 3,000 crore in AT-1 bonds and Rs 7,000 crore through qualified institutional placement (QIP),” he said.
When asked about the expected timeline to raise Rs 7,000 crore of equity, he replied, “We have done the roadshows, we have final roadshows today and tomorrow and we are expecting it to come within at week’s time.”
“Post pandemic we have seen the green shoots in the economy. This year probably we may have a growth of around 3.5-4 percent by March 2021. Next year it is expected that the gross domestic product (GDP) will grow around 10 percent and the credit growth could be between 12 percent and 14 percent. So in order to look for the opportunities next year and onwards, we would like to raise the capital at this point of time and concentrate for the business opportunities during next 24 months,” he said.
On restructuring of accounts, he said, “I expect anything around Rs 18,000 crore of restructuring accounts requests.”
The bank’s collection efficiency has improved from September onwards. “As of November 30th, the collection efficiency stood at 92 percent,” he said.
For entire discussion, watch video...

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