“It is possible that we will raise the capital next month or March, depending on market conditions,” he said.This will help the bank reduce government holdings by another 4% from the current level of 92.4%, the MD said. The bank’s promoter stake fell to 94.6% in December as the government diluted 2.2% stake in the Chennai-headquartered lender through a sale offer.
Srivastava, however, said the bank is likely to miss the August deadline to raise the public interest to the minimum level of 25%. “It will be difficult in August 2026,” he said.
IOB’s solvency ratio was 16.30% at the end of December.
Punjab & Sind Bank, on the other hand, will hold an extraordinary general meeting on January 21 to consider and approve raising equity of up to Rs 3,000 crore through QIP. The bank plans to use the QIP to meet the capital requirement for its growing operations, as well as comply with Basel-III norms and meet the minimum public shareholding requirement, it had said in a stock exchange notice on December 30.
Punjab & Sind Bank reported 15% YoY growth in advances to Rs 1.11 lakh crore. The government has 93.9% of the shares in the bank.
Government stake also remains above the regulatory ceiling in the Central Bank of India (89.3%) and Uco Bank (91%). The Securities & Exchange Board of India has directed public sector banks to meet the norm of minimum 25% public holdings by August this year, while public sector units are known to be getting regular extensions.
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