Punjab & Sind Bank gets govt nod for IPO
The government is understood to have given clearance to the initial public offer (IPO) plan of the only unlisted nationalised bank Punjab & Sind Bank.
Approval has been granted to the Punjab & Sind Bank IPO plan, sources said. The bank plans to come out with a public offer by July which could fetch it about Rs 500 crore.
"The IPO could hit the market in either in the last week of June or early July," Punjab & Sind Bank chairman and managing director GS Vedi had said earlier this week.
"We have proposed to issue four crore shares. The size of the issue is expected to be between Rs 400 and 500 crore," he had said.
Currently the government owns 100 per cent stake in the bank.
There are 19 nationalised banks in the country. Of this, 18 have gone public with the latest being the Kolkata-based United Bank of India that got listed earlier this year.
The money raised through IPO would help the bank to grow the business and asset book, he had said, adding the bank is also expecting capital infusion of Rs 500-700 crore from the government during this fiscal. Capital infusion would result in shoring up of its tier I capital above 8 per cent, he had said, adding the bank's tier I capital stood at 7.68 per cent as of March, 2010.
The government had restructured the equity structure of the bank in 2008. After the capital rejig, the equity capital of the bank came down to Rs 183.06 crore from Rs 743.06 crore earlier.