Rs 12,000 crore raised by this public sector bank; do you have it?

On Wednesday, shares of the bank surged 2.87 per cent after this announcement.

Punjab National Bank (PNB) has got authorization to issue capital in one or more tranches of up to Rs 12,000 crore through Basel III Compliant AT-1/Tier II Bonds (AT-1 Bonds up to Rs 7000 crore and Tier- II Bonds up to Rs 5000 crore). The Bank's Board of Directors authorized the same during its meeting on March 29, 2023.

PNB is one of India's oldest banks, with a virtual presence in every major city and town. The Bank serves a diverse clientele through a range of services that include business and personal banking, industrial financing, agricultural finance, and international finance.

The primary source of income is interest earned on various loans given to individuals and corporates. PNB earned Rs 74,879.54 crore in revenue in the latest financial year. It has posted decent revenue growth of 13.43 per cent in the last three Years. The bank reported an 8 per cent, rise in its advances on a yearly basis.

Shares of PNB surged 2.87 per cent to Rs 44.92 with an intraday high of Rs 46.59 and a low of Rs 44.60 on March 29. It has a 52-week high of Rs 62.50 and a 52-week low of Rs 28.50.

Currently, shares of PNB are trading at a P/B of 0.55x, and a P/E of 28.1x. Bank’s command ROE of 4.05 per cent and ROCE of 4.02 per cent respectively at the end of FY22. The bank has a Good Capital Adequacy Ratio of 14.50.

In terms of holding, 73.15 per cent of the bank's shares are held by the government, while foreign institutions and Domestic institutions held 1.71 per cent and 12.98 per cent, respectively. Public hold 12.16 per cent at the end of December 2022.