IOB, UCO Bank likely to raise funds through QIP route next month

Another public sector bank, Punjab & Sind Bank, is planning to raise Rs 2,000 crore this year. The government holds 98.25 per cent in the state-owned bank

Public-sector lenders Indian Overseas Bank (IOB) and Uco Bank are likely to raise funds through qualified institutional placement (QIP) next month.

Punjab & Sind Bank is likely to follow suit later this financial year to meet the public shareholding norm of 25 per cent.

When a public-sector unit raises funds through QIP, the money goes to the company because it involves issuing new shares whereas in the case of offer for sale (OFS), the money raised goes to the government because its shares are sold.

An email query sent to the finance ministry, Uco Bank, IOB, and Punjab & Sind Bank remained unanswered