PNB gets board go-ahead to tap market for raising Rs 10,000 crore

The Government of India currently holds 85.59 per cent stake in the bank.

State-owned Punjab National Bank (PNB) on Thursday said its board has approved a proposal to raise Rs 10,000 crore through a mix of both equity and debt.

Besides, the board has cleared opening balance sheet of the amalgamated bank as on April 1, which is post amalgamation of Oriental Bank of Commerce and United Bank of India into PNB, the bank said in a regulatory filing.

The board has given its nod for "raising of capital through issue of equity shares and Basel III-compliant tier-2 bonds by way of private placement, qualified institutional placement (QIP), further public offer (FPO), rights issue or any other mode or through a combination thereof up to an amount of Rs 10,000 crore".

The bank will seek shareholders' nod for raising of equity capital for an amount up to Rs 7,000 crore in the forthcoming annual general meeting.

The Government of India currently holds 85.59 per cent stake in the bank.

The country's second-largest lender PNB is planning to hit capital markets in the fourth quarter of this financial year to raise funds to help meet growth needs and regulatory requirements.

The bank has a capital adequacy ratio of 14.14 per cent at the end of March 2020.

The board also approved appropriation of accumulated losses of Rs 28,707.92 crore from the share premium account of the amalgamated bank.

PNB says board will consider a proposal to raise capital on July 9

Besides, the board will clear opening balance sheet of the amalgamated bank as on April 1.

State-owned Punjab National Bank (PNB) on Monday said its board will consider a proposal to raise capital through a mix of both equity and debt on July 9.

Besides, the board will clear opening balance sheet of the amalgamated bank as on April 1, which is post amalgamation of Oriental Bank of Commerce and United Bank of India into PNB, the bank said in a regulatory filing.

The board will consider proposal for raising capital through issue of Basel-III-compliant tier-1 bonds, tier-2 bonds and equity shares by way of private placement, qualified institutions placement, follow-on public offering, rights issue or any other mode or through a combination, it said.

Following the board approval, the resolution will be put for the shareholders' nod, it added.

The country's second-largest lender PNB is planning to hit capital markets in the fourth quarter of this financial year to raise funds to help meet growth needs and regulatory requirements.

The bank is capitalised with the capital adequacy ratio of 14.14 per cent at the end of March 2020.

PNB amalgamated Oriental Bank of Commerce and United Bank of India with itself effective April 1 this year. With the merger, the bank now has about 11,000 branches, more than 13,000 ATMs, one lakh employees, and a business mix of over Rs 18 trillion. Total domestic business of PNB at the end of March 2020 stood Rs 11.81 trillion.

Fitch revises outlook on 9 Indian banks' IDRs from stable to negative

Action follows change in outlook on India's rating.

Global rating agency Fitch on Monday revised the outlook from “stable” to “negative” on the Long-Term Issuer Default Ratings (IDR) of nine Indian banks following revision in the outlook on India rating ('BBB-'). It affirmed rating on IDRs, Support Ratings (SR) and Support Rating Floors (SRF).

The rating action covers nine banks - State Bank of India (SBI), Bank of Baroda (BOB), BOB’s subsidiary in New Zealand, Bank of India (BOI), Canara Bank (Canara), Punjab National Bank (PNB), ICICI Bank (ICICI), Axis Bank (Axis) and Export-Import Bank of India (EXIM).

The IDRs for Indian banks are support-driven and anchored to their respective SRFs. They are based on assessment of high to moderate probability of extraordinary state support for these banks. This takes into account our assessment of the sovereign's ability and propensity to provide extraordinary support, Fitch said in a statement.

The rating action does not affect the banks' Viability Ratings (VRs). EXIM does not have a VR as its role as a policy bank makes an assessment of its standalone credit profile less meaningful.

On June 18, 2020, Fitch changed outlook on India to Negative from Stable due to the impact of the escalating coronavirus pandemic on India's economy.

The Negative Outlook on India's reflects an increasing strain on the state's ability to provide extraordinary support. The sovereign has limited fiscal space and there has been significant deterioration in fiscal metrics due to challenges from the Covid-19 pandemic, rating agency added.

Covid-19: PNB opens emergency credit line for MSMEs to enhance liquidity

There is a facility of standby line of credit for MSMEs as well as PNB COVID-19 Emergency Credit Facility (PNB-CECF), the bank said.

Punjab National Bank on Wednesday said it has opened an emergency credit line for the MSME sector to help it tide over liquidity issues amid the coronavirus crisis.

It has also liberalised the working capital assessment (LWCA) model for MSME borrowers having limits of Rs 5 crore and above, the state-owned lender said at a webinar hosted with industry body PHD Chamber to address the issues of micro, small and medium enterprises.

There is a facility of standby line of credit for MSMEs as well as PNB COVID-19 Emergency Credit Facility (PNB-CECF), the bank said.

There are also other policy initiatives like restructuring of MSME advances, interest subvention scheme, TReDS, Mudra loan products, Credit Guarantee Trust for MSMEs and PSB loans in 59 minutes, it added.

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The bank's MD and CEO SS Mallikarjuna Rao said in the backdrop of the nationwide lockdown, the bank has organised the webinar to address the liquidity requirement of its customers through the online platform.

This forms a part of its 'Mega MSME Outreach' aimed at connecting with its MSME customers across the country and to address their challenges.

He said the bank has witnessed a humongous response from borrowers across the country through this outreach programme.

SBI, Bank of Baroda, PNB: Here's how you can make money in PSU bank stocks

SBI has a strong relevance of 200-weekly moving average (WMA), as it has never been decisively broken in the last one year.

Business Standard : The benchmark indices witnessed a sharp rally, rising over 3 per cent in the last week. The S&P BSE Sensex rose 1353 points, or 3.65 per cent, to close at 38,024, hile the Nifty50 rose 391 points, or 3.54 per cent, to end at 11,246.

The overall trend was spearheaded by Nifty Bank, which soared 1620 points, or 5.80 per cent. The index witnessed strong buying on every new lifetime high levels. Along with private banks, investors showed keen interest PSU banks started showing the keen interest of investors with a jump in volumes and a change in trend.

NIFTY PSU BANK (NIFTYPSUBA): The index needs to strongly hold above 2950 levels to maintain the positive sentiment. Any breach on the same may trigger a sell-off. A bigger move is expected only above 3,200. The recent rally from Rs 2700 to Rs 3000 levels has been a straight rise without any confirmed breakout. The the last six months, the Nifty PSU Bank index has been hovering around its 200-days moving average (DMA) as per daily chart.

STATE BANK OF INDIA (SBI): The stock has a strong relevance of 200-weekly moving average (WMA), as it has never been decisively broken in the last one year. The formation resembles a symmetrical triangle with immediate trendline resistance at Rs 310 level. The 200 WMA is placed at Rs 260, which acts as a strong support from a medium-term perspective. The weekly MACD has just risen above zero line, indicating a possible upside. A firm rally above Rs 310 will open doors for Rs 340 and Rs 360 levels.

BANK OF BARODA (BANKBARODA): The bigger picture for the stock reveals negative sentiment on the chart. The falling channel pattern indicates selling pressure in the range of Rs 120 – Rs 125, its upper falling trend line. The 200-days moving average (DMA) coincides around the same range, placed at Rs 119.30 level. However, it has a support around Rs 112, a level where 100DMA and 50DMA in a process to make positive crossover. If it happens, the stock may cross its pressure range and head towards Rs 140 and Rs 150 level.

PUNJAB NATIONAL BANK (PNB): The current rally towards Rs 86 level is due to the strong buying seen around Rs 68, which has become a support for a-near term trading, technical chart suggests. The golden crossover of 50DMA and 200DMA has further strengthened the upward move. A possible crossover of 100DMA with 200DMA may even lead to a stronger rally in the near future. The immediate support comes in the range of Rs 75 – Rs 78 and the trend recommends a move towards Rs 94 and Rs 105 level.