InvestorQ : Why is PNB looking to raise fresh equity funds of Rs.7000 crore?
indhumathi Sayani made post

Why is PNB looking to raise fresh equity funds of Rs.7000 crore?

Answer
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shrinidhi Rajan answered.
2 months ago


PNB shareholders approved a proposal to raise up to Rs.7000 crore through sale of shares to enhance its capital base. This will be on a larger balance sheet as PNB has already amalgamated OBC and United Bank of India into its balance sheet. This will most likely be through the qualified institutional placement route or QIP route.

Currently the government of India holds 85.59% stake in the bank. These funds are expected to be raised in the fourth quarter of FY21. PNB had capital adequacy of 14.14% after the accumulated losses of Rs.28,708 crore is appropriated from the share premium account.

Post the merger with OBC and UBI, PNB has a total of 11,000 branches plus a network of 13,000 ATMs. Its total business consisting of deposits + loans is over Rs.18 trillion.