State-owned Punjab & Sind Bank has sought Rs 990 crore capital infusion from the government to fund its business growth.
"We have requested the government to infuse additional capital of Rs 990 crore by way of preferential shares," said Punjab & Sind Bank Executive Director PK Anand.
The additional capital would help sustain credit growth of 30% in the next 3-4 years, he said.
In addition, the bank is also planning to mobilise Rs 300 crore from Tier II bonds in the next 5 months of the current fiscal.
The money would be raised as per the requirement and the interest rate condition in the market, he said.
The bank expects to clock 28% increase in advances, while deposits are likely to grow at 30% this fiscal, he said.
Advances jumped 28.5% to Rs 43,170 crore while deposits rose 24.9% to Rs 59,797 crore by the end of first quarter of the current fiscal, year-on-year.
Total business of the bank rose by 26.8% to Rs 1,02,967 crore at the end of June 30, 2011.
The bank has already mobilised Rs 300 crore from bonds last month. The fund was raised through unsecured redeemable subordinated Tier II bonds with a coupon rate of 9.73% per annum.
It is to be noted that the bank, last among the public sector lenders to be listed, raised funds through initial public offering (IPO) an year ago. The bank raised Rs 470.82 crore through IPO, which was subscribed 50.75 times.
