Shares of Punjab and Sind Bank climbed nearly 5 percent on Wednesday, December 28, after the bank notified about a board meeting to consider a proposal for raising up to ₹250 crore by various modes, including equity and bonds issuance. The board will meet on December 30.
During Wednesday’s trade, the stock opened at a price of Rs. 33.05 per share against the previous close of Rs. 32.75 per share and grew further during the early trading session to touch an intraday high of Rs. 34.35.
The stock touched a 52-week high of Rs. 44.75 on December 15, 2022 and a 52-week low of Rs. 13 on June 21, 2022, indicating that at the current level, the stock is trading over 164 percent above its 52-week low and 23 percent below its 52-week high.
The stock has grown nearly 60 percent in the last one month. It has given a positive return of over 138 percent in the past six months. However, the stock has declined almost 30 percent in the last five years.
On Tuesday, the bank said that the board will consider raising up to ₹250 crore in any combinations of equity shares through public issue (follow on public offer)/ rights issue/ qualified institutional placements / preferential issue or bonds in the form of basel III compliant additional tier I bonds/ basel III compliant tier II bonds.
The capital will be raised in one or more tranches within a period of 12 months from the date of approval by way of issue of these instruments, reported PTI.
"Public sector banks have done well thus far," Morgan Stanley stated in a recent research on PSU banks and expects that this solid performance may continue in the coming quarters. The global brokerage anticipates that over the coming few years, more substantial margins, consistent loan growth, and improved operational leverage will drive PSBs' outstanding performance.
In the July-September quarter of the fiscal year 2022–23, Punjab & Sind Bank recorded strong earnings. In the second quarter of FY23, the bank's net profit increased 27.5 percent YoY, while its net interest income increased 25.6 percent YoY. The net interest margin increased to 3.06 percent.
Punjab & Sind Bank has a market capitalization of ₹22,197.25 crore. The bank operates through four segments: treasury operations, corporate/wholesale banking, retail banking and other banking operations. Its social banking includes government schemes and the Pradhan Mantri Yojana. It has approximately 1531 bank branches.