NEW DELHI : Public sector lender Punjab & Sindh Bank is looking to raise up to ₹500 crore through a qualified institutional placement (QIP) offering.
“A meeting of Board of Directors of Punjab & Sind Bank is scheduled to be held on December 06, inter alia, to revalidate the approval for a further period of twelve months to issue of Equity Shares by way of QIP upto an amount of Rs. 500 crore," the company said in a BSE filing.
The shares of the bank closed 1.5% higher at ₹20 on Tuesday.
QIP is a tool used by listed companies to sell shares, debentures, or any securities, other than warrants that are convertible into stocks, to a qualified institutional buyer such as mutual funds and foreign institutions.
Punjab & Sind Bank on Wednesday reported a net loss of ₹468.73 crore for the second quarter ended September 30, widening from a net loss of ₹109.23 crore in the same quarter previous year, on account of higher provisioning.
The provisions and contingencies of Punjab & Sind Bank surged 63.81% to ₹972.62 crore as compared to ₹593.73 crore made in the same quarter a year-ago. The bank's provisions, stood at ₹334.53 crore in June quarter.