Punjab National Bank Raises ₹5,000 Crore Through QIP, Reports Strong Q1 FY25 Results - Read Here

The QIP was open for subscription from September 23 to 26, 2024. PNB stated that the issue received an overwhelming response, with bids totaling ₹41,734 crore, which is 16.7 times the base issue size of ₹2,500 crore and 8.3 times the total issue size of ₹5,000 crore.

By Aayushi Dubey Sep 28, 2024, 13:32 IST

Punjab National Bank (PNB), a state-run bank, successfully raised ₹5,000 crore through a Qualified Institutional Placement (QIP) on September 28, 2024. The bank issued 48.19 crore equity shares at a price of ₹103.75 per share, which was slightly lower than the floor price of ₹109.16 per share, offering a discount of 4.96%.

The QIP was open for subscription from September 23 to 26, 2024. PNB stated that the issue received an overwhelming response, with bids totaling ₹41,734 crore, which is 16.7 times the base issue size of ₹2,500 crore and 8.3 times the total issue size of ₹5,000 crore. Investors included mutual funds, foreign portfolio investors (FPIs), and insurance companies.

The capital raised through this QIP will help improve PNB’s CET-1 ratio and overall capital adequacy ratio, strengthening the bank's financial health.

PNB Q1 FY25 Results

In the first quarter of FY25, PNB reported a significant rise in its standalone net profit, which more than doubled to ₹3,252 crore compared to ₹1,255 crore in the same period last year. This improvement was mainly due to a decline in bad loans and increased interest income.

The bank's total income grew to ₹32,166 crore in Q1 FY25 from ₹28,579 crore in the year-ago period. Interest income also rose to ₹28,556 crore, compared to ₹25,145 crore in the same quarter last year.

Additionally, PNB’s gross non-performing assets (NPAs) dropped to 4.98% from 7.73% a year ago, while net NPAs declined to 0.60% from 1.98%. This led to a sharp reduction in provisions for bad loans, which decreased to ₹792 crore from ₹4,374 crore in Q1 FY24.

On a consolidated basis, PNB posted a net profit of ₹3,976 crore, compared to ₹1,342 crore in the previous year.

PNB Stock Performance

PNB's stock has seen a strong performance, gaining over 36% in the past 12 months and 73% in the past five years. This compares favorably to the NIFTY BANK index, which increased by 21.5% in one year and 80% over five years.