Punjab National Bank plans to raise up to US$300 million through an issuance of equity shares on a qualified institutional placement basis, Mint reported Oct. 17, citing "two people aware of the development."
The lender, which will likely raise between US$250 million and US$300 million, has contacted merchant bankers to pitch for mandates for the planned issuance, one of the sources said. The bank will finalize the issue size and launch timeline after selecting the panel of bankers, the source added.
The lender has been granted shareholder approval to raise up to 30 billion rupees via an equity issuance, either through a qualified institutional placement or a follow-on public offering.
As of June 30, Punjab National Bank's capital adequacy ratio stood at 11.64%, compared to the Basel III requirement of 11.5% by March 2019.
The bank's managing director and CEO, Sunil Mehta, did not respond to the publication's calls and text messages seeking comments.
As of Oct. 16, US$1 was equivalent to 64.72 Indian rupees.