Punjab National Bank raises ₹5,000 crore via QIP issue; check the stock's 5-year return

Punjab National Bank (PNB), the state-run lender, on Friday, September 28, said it has raised ₹5,000 crore through a qualified institutional placement (QIP).

The bank's QIP issue was open for subscription from September 23 to 26, 2024, it said.

"The bank received bids from Qualified Institutional Buyers (QIBs), including mutual funds, foreign portfolio investors (FPIs), insurance companies, etc., to the tune of ₹41,734 crore for the QIP issue, 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," it said.

The amount of capital raised through the QIP issue will augment the bank's CET-1 ratio and the overall capital adequacy ratio, it added.

PNB Q1 FY25 Results

PNB reported a more than two-fold jump in standalone net profit at ₹3,252 crore for the quarter ended June 30, 2024 (Q1 FY25), helped by a decline in bad loans and an improvement in interest income.

The state-owned bank had posted a net profit of ₹1,255 crore for the year-ago period.

Total income in the quarter rose to ₹32,166 crore from ₹28,579 crore, PNB said in a regulatory filing.

The lender's interest income also increased to ₹28,556 crore from ₹25,145 crore in the same quarter a year ago.

Gross non-performing assets (NPAs) declined to 4.98% of gross advances by June 2024 from 7.73% in the same quarter a year ago.

Net NPAs too declined to 0.60% from 1.98%.

As a result, provisions for bad loans came down drastically to ₹792 crore in April-June FY25 as against ₹4,374 crore in the year-ago period.

On a consolidated basis, the bank reported a net profit of ₹3,976 crore in the quarter under review as against ₹1,342 crore a year ago.

The consolidated financial result of the bank comprises five subsidiaries and 15 associates.

PNB stock performance

Shares of the lender have rallied over 36% in the past 12 months and 73% in the past five years. In comparison, the NIFTY BANK index has risen over 21.5% in the one-year period and over 80% in five years.