Punjab & Sind Bank, a state-owned entity, is planning to raise Rs 2,000 crore in the latter half of the fiscal year through a Qualified Institutional Placement (QIP) to support its business expansion. Swarup Kumar Saha, the Managing Director and CEO of Punjab & Sind Bank, informed PTI that the board has already approved this plan, and they are aiming to engage merchant bankers by August. The fundraising is expected to be completed in either the second or third quarter, depending on market conditions. Saha highlighted that the QIP would not only enhance the bank’s Capital Adequacy Ratio, which currently stands at 17.10 per cent as of March 2024, but also reduce the government’s stake in the bank, as the government of India currently holds a 98.25 per cent share.
When asked about the loan growth outlook for the current financial year, Saha stated that the bank foresees a 12-14 per cent growth in its asset book, with retail, agriculture, and MSME (RAM) sectors expected to witness a growth of 15-18 per cent. On the deposit side, the bank anticipates liabilities to grow by 8-10 per cent during the ongoing financial year. Saha also emphasized the bank’s customer-centric initiatives aimed at improving satisfaction levels, including the transformation of 50 identified branches into model or smart branches. Additionally, the bank has introduced a PSB Pink debit card powered by RuPay, specifically designed for women with a range of benefits.
Moreover, Punjab & Sind Bank has launched demat services through wealth-tech partner Fisdom, allowing customers to invest in the equity market and purchase mutual funds. The bank has also introduced a series of customer-centric digital offerings through its omnichannel PSB UNiC App, providing secure and hassle-free banking services, such as opening savings accounts through video KYC, Bulk NEFT/RTGS, access to free CIC credit score, and UNiC App registration through Aadhaar OTP. Saha expressed that these new product initiatives reflect the bank’s commitment to making a positive societal impact and creating a more sustainable future for all.