Punjab & Sind Bank gears up for IPO
Punjab and Sind Bank gets a fresh lease of life after the Govt announced a new equity structure and this restructuring will be done through a mix of bonds and preference shares, reports HT Correspondent.Updated: Aug 08, 2008 22:44 IST
Struggling state-run bank Punjab and Sind Bank (PSB) got a fresh lease of life after the government on Friday announced a new equity structure. It paves the way for the bank’s public listing to raise funds from the capital markets.
“Restructuring would enable the bank to go for initial public offer...for raising additional capital from the market,” Kapil Sibal, minister, science and technology, told reporters after the cabinet meeting that approved the proposal.
The restructuring would be done through a mix of bonds and preference shares.
Sibal said that bank would retain Rs 183 crore as equity capital. The enhanced capital will enable the bank to expand its business in compliance with global capital adequacy norms, Basel-II, and improve its financial position, Sibal said.