Punjab & Sind Bank's Strategic Capital Enhancement

State-owned Punjab and Sind Bank is set to raise Rs 2,000 crore through a Qualified Institutional Placement (QIP) in the current quarter, as announced by the bank's managing director and CEO, Swarup Kumar Saha. This move is part of the bank's broader strategy to strengthen its financial position and expand its lending capabilities.

Impact on Government Holding and Capital Adequacy

With the successful execution of the QIP, the government's stake in Punjab & Sind Bank is expected to decrease by 3-4%, while the bank's capital adequacy ratio is projected to improve by the end of March 2025. This adjustment aligns with the government's extended deadline for public sector enterprises to meet minimum public shareholding norms, now set for August 2026.

Financial Performance Highlights

In a remarkable financial turnaround, Punjab & Sind Bank reported a significant increase in net profit to Rs 282 crore in the December 2024 quarter, up from Rs 114 crore in the same quarter the previous year. This improvement was attributed to a reduction in bad loans, with gross non-performing assets (NPAs) falling to 3.83% from 5.70% a year earlier.

Furthermore, the bank's total income saw a healthy rise to Rs 3,269 crore during the quarter, compared to Rs 2,853 crore in the corresponding period last year, signaling robust growth and operational efficiency.