Punjab National Bank (PNB) today said it would approach the Securities and Exchange Board of India (Sebi) within a week for a Rs 124-crore revised initial public offer (IPO). The bank's shares would be offered at a premium of Rs 21 each.
"We have scaled down the size of the offer from what we had planned earlier, but will apply within a week to Sebi for the IPO," PNB chairman and managing director S S Kohli said.
Earlier, the bank had planned mooted to offer 25 per cent shares, but in view of the present market conditions, it had been lowered to 15 per cent, he said. This IPO would enable the bank improve further its capital adequacy ratio from the present 10.8 per cent.
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On the proposed life and non-life insurance ventures for which it has tied up with Zurich Financial Services, DCM Shriram Consolidated Ltd and Vijaya Bank, Kohli said it would apply for Reserve Bank of India permission shortly.
PNB had decided to hike its equity participation in the insurance venture to 26 per cent from the 15 per cent and the bank plans to raise Rs 52 crore through its internal resources and would have two of its nominees on the board of the insurance venture.
The proposed initial equity capital for the insurance venture would be Rs 100 crore each for life and non-life, he said.
Zurich and PNB would hold 26 per cent equity each, while Vijaya Bank would have 12.5 per cent, instead of the earlier proposed 8 per cent and DCM Shriram would have the balance 35.5 per cent equity.
Kohli said PNB's non-performing assets (NPAs) would be reduced to a level below 6 per cent by March, 2002, from 6.6 per cent at the end of December 2001. He said fresh slippage was to the tune of Rs 600 crore till December, 2001, and the bank had been able to recover as much as Rs 360 crore.
PNB's aggregate deposits through its 3,861 branches grew by 16.8 per cent to Rs 58,965 crore in the last reported quarter of 2001-02, while its credit registered a growth of 21.1 per cent to Rs 32,245 crore during the same period. Kohli said the growth of deposits of 10.4 per cent was just below the system growth of 11.5 per cent.