Punjab National Bank trades firm after QIP launch

Punjab National Bank (PNB) was trading firm, up 1% at Rs 175 on the National Stock Exchange (NSE), after state-owned bank announced the opening of the qualified institutions placement (QIP).

The shareholders of the bank at their extra ordinary general meeting (EGM) held on December 4, 2017 approved the raising of common equity tier-I capital of the bank in aggregating not exceeding Rs 5,000 crore including premium by way of FPO (Follow on Public Offer)/ QIP (Qualified Institutional Placement) /Rights Issue/ ESOP (Employees Stock Option Plan) and/ or any other mode or combination(s) thereof, as may be decided by the Board.

PNB said it intends to use the net proceeds of the Issue to augment its CET I capital and for general corporate purposes.

At 11:59 AM; the stock was the largest gainer among Nifty PSU Bank index, which down 0.11% at 3,805 points. The Nifty 50 index was down 0.43% at 10,278 points.

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