State-owned Punjab & Sind Bank is gearing up to raise Rs 2,000 crore in the latter half of this fiscal year. The bank plans to use Qualified Institutional Placement (QIP) to fund its business growth.
The bank’s managing director and CEO, Swarup Kumar Saha, shared that the board has given its approval for this move. He expects merchant bankers to be on board by August. The fundraising could happen in the second or third quarter, depending on market conditions.
This QIP will help boost the bank’s Capital Adequacy Ratio, which stood at 17.10% at the end of March 2024. It will also reduce the government’s stake in the bank, which currently stands at 98.25%.
Looking ahead, the bank aims for 12-14% growth in its asset book this financial year. The retail, agriculture and MSME sectors are expected to see a growth of 15-18%. On the deposit front, the bank anticipates 8-10% growth.
Punjab & Sind Bank is also focusing on improving customer satisfaction. They’re transforming 50 branches into model or smart branches and have introduced new offerings like the PSB Pink debit card for women and demat services through partner Fisdom.
The bank has also launched digital services through its PSB UNiC App. These include video KYC for opening savings accounts, bulk NEFT/RTGS transfers and access to free credit scores.
Saha emphasized that these initiatives reflect the bank’s commitment to making a positive impact on society and creating a more sustainable future for all.
