SBI, PNB and BoB May Go for Share Sale This Fiscal

PNB has already expressed its intent to hit capital markets in the fourth quarter this fiscal to raise funds to help meet growth needs and regulatory requirements. “We will be planning (capital raising) somewhere around the end of third quarter or beginning of fourth quarter. we would have declared two quarterly balance sheet of the amalgamated entities,” PNB Managing Director S S Mallikarjuna Rao told PTI in June.

It is to be noted that private sector banks, including ICICI Bank, Axis Bank and Kotak Mahindra Bank, have already mobilised capital thr0ugh QIPs in the last three months. In a precursor to capital raising exercise, most of the public sector bankshave already got shareholders’ approval for raising capital through a mix of debt and equity route in the current fiscal.

For example, shareholders of SBI have given approval for raising Rs 20,000 crore through public issue or private placement of shares while PNB has received shareholders’ nod for mopping up Rs 7,000 crore. BoB and Union Bank of India too have approvals from their respective shareholders for raising Rs 9,000 crore and Rs 6,800 crore, respectively, by way of common equity capital through various modes, including QIP.