Punjab & Sind Bank plans 8-10% government stake dilution in FY27; targets deposit growth of 13-14%
Mint · Harsh Kumar ·
The proposed stake dilution, along with a potential OFS, comes as the lender moves to meet the minimum public shareholding requirement of 25%.
The government plans to sell an 8-10% stake in Punjab & Sind Bank through a qualified institutional placement (QIP) to raise about ₹1,500 crore in FY27, managing director and chief executive officer Swarup Kumar Saha told Mint in an interview. The government is separately working on an offer for sale (OFS) and will decide on its timing depending on market conditions.
The lender has secured board approval to raise up to ₹3,000 crore through equity issuance. The government of India holds a 93.85% stake in the bank. The proposed stake dilution, along with a potential OFS, comes as the lender moves to meet the minimum public shareholding requirement of 25%.
“We have already got the approvals in place and are talking to investors in terms of the QIP process. We have done one round in the September quarter and will be doing another round in Q3,” Saha said.