PNB To Hold Non-Deal Roadshow Next Week For Proposed Rs 7,000 Crore QIP

Punjab National Bank offers customers 4.5 percent interest on deposits less than Rs 2 crore. Senior citizens earn 5.25 percent. Those depositing between Rs 2 crore to Rs 10 crore earn an interest of 3.25 percent.

The Punjab National Bank said on December 5 that it will organise a roadshow next week for the proposed qualified institutional placement (QIP) worth Rs 7,000 crore.

The government lender said in a regulatory filing that it will be taking part in the non-deal roadshow scheduled to be held on December 7 and 8 to meet prospective investors.

The bank was granted permission to raise the Rs 7,000 crore through QIP this financial year. PNB Managing Director SS Mallikarjuna Rao had announced earlier that it had taken the board’s approval to raise Rs 14,000 crore by way of Additional Tier 1 (AT-1) bonds, Tier II, and QIP.

He had said: “Of this, Rs 4,000 crore is for Tier II. Against this, we have raised Rs 2,500 crore and remaining Rs 1,500 crore and additional Rs 3,000 crore from AT-1 bonds will be raised before November 30. With respect to QIP of Rs 7,000 crore, we are planning to go to the market in the second or third week of December. It would depend on the book running lead manager (BRLM) and roadshows.”

Notably, nothing is sold at a non-deal roadshow; it only provides a platform to discuss an upcoming offer and develop interest in it, which eventually helps with fund mobilisation.

With PTI inputs