Shares of Punjab & Sind Bank rose by nearly 6% on March 25 following the announcement of its Qualified Institutional Placement (QIP) of equity shares. The lender set the floor price for the issue at Rs 40.38 per share. As of the afternoon of March 25, the stock was trading at Rs 47.27 per share, continuing its positive momentum from previous sessions.
The QIP was launched on March 24, with the floor price approved by the bank. In an exchange filing, Punjab & Sind Bank disclosed that it may offer a maximum discount of 5% on the floor price. The final issue price will be determined after consultations with the appointed book running lead managers for the QIP.
This rally marks the fifth consecutive day of gains for the bank’s shares, which have surged more than 16% over this period. The stock has recovered significantly from a 52-week low of Rs 37 per share in early March. However, it remains well below its 52-week high of Rs 74 per share, reflecting a decline of nearly 18% over the past year.
In June 2024, the bank's Managing Director and CEO, Swarup Kumar Saha, stated that Punjab & Sind Bank aims to raise Rs 2,000 crore through the QIP in the second half of the fiscal year. He emphasized that the funds raised would enhance the bank’s capital adequacy ratio, which stood at 17.10% at the end of March 2024.
For the October-December quarter of FY25, the bank reported a capital adequacy ratio of 15.95%, with an improvement in its gross non-performing asset (NPA) ratio, which decreased to 3.83% from 5.70% in the same quarter of FY24.
