(LiveMint)
Public sector banks are queueing up to raise funds from the equity market, especially through qualified institutional placements (QIPs) against the backdrop of improved investor sentiment on account of the government’s bank recapitalisation plan and a recent upgrade of India’s sovereign rating by Moody’s Investors Service.
After the government announced the Rs2.11 trillion bank recapitalisation plan in October, PSU banks have announced plans to raise more than Rs13,000 crore through QIPs since 24 October as against a total of Rs8,419 crore raised in the last four years.
On Tuesday, Bank of Baroda’s board approved fund raising up to Rs6,000 crore through QIP or rights issue, the bank stated in a stock exchange notification. Union Bank of India has also started its roadshows in Singapore, Hong Kong, London and New York to raise Rs2, 000 crore. According to a PTI report dated 6 November, Sunil Mehta, managing director and chief executive of Punjab National Bank said the bank had received board approval for raising up to Rs5,000 crore through a QIP and that the bank will be accessing the market in the next few months. Bank of India is also planning to raise another Rs500 crore during the current fiscal year.
