In the third quarter of the current fiscal year, the publicly traded Punjab & Sind Bank intends to sell shares to institutional investors in order to raise Rs 250 crore. Punjab & Sind Bank managing director Swarup Kumar Saha, the bank has received approval to raise Rs 250 crore through a qualified institutional placement (QIP) in the upcoming quarter.
It will assist in achieving the twin goals of increasing capital and decreasing the government's ownership stake in the bank. A 98.25 percent ownership in the bank, which debuted on stock exchanges in 2010, is owned by the Indian government. He said that the capital raising had also received approval from the government. In May of this year, the bank wrote to the Centre to request clearance for a capital increase.
Saha stated that the bank's goal is to have 2,000 branches and as many ATMs around the nation in the following three years as part of a campaign to boost contact points and brand visibility. According to him, more branches will boost loan product penetration and assist in mobilising low-cost deposits.
"We are working to increase operational effectiveness so that I may lower my costs and boost my fee income. We are focusing on very specific areas, like expanding the ATM network and enhancing the digital banking experience, according to Saha.
He said that since an outside consumer spends roughly Rs 17 each transaction to use an ATM, the ATM network itself might be profitable. According to him, the bank is currently updating its core banking system (CBS), which will greatly improve the digital journey and increase efficiency.
