PSU banks in focus: Punjab & Sind Bank shares jump 13%; UCO Bank, Central Bank of India shares fall after QIP launch

Shares of UCO Bank, Central Bank of India, and Punjab & Sind Bank are in the spotlight on Tuesday following their announcements to raise capital through Qualified Institutional Placement (QIP).

Punjab & Sind Bank share price jumped 13.25% to ₹50.49, while UCO Bank shares declined by 2.43% to ₹37.31. Central Bank of India shares fell by 2.66% to ₹45.60 on the BSE.

The boards of directors of these three public sector banks (PSBs) have approved the fundraising through the issuance of shares to institutional investors. According to reports, the government has sanctioned a ₹10,000 crore capital-raising initiative via an offer for sale (OFS) for five PSU banks to ensure compliance with minimum public shareholding norms.

Here are the details of the QIP announcements of these three PSU banks:

UCO Bank QIP

UCO Bank initiated its QIP process on March 24 to raise ₹2,000 crore. The government is expected to dilute its stake in the bank by 3%, bringing it down from the current 95.39%. UCO Bank QIP floor price has been set at ₹36.07 per share.

Central Bank of India QIP

State-owned Central Bank of India commenced its QIP on March 24, following requisite approvals from its Board and shareholders. The bank has determined a floor price of ₹42.62 per share, calculated as per the Securities and Exchange Board of India’s (SEBI) pricing formula.

Punjab & Sind Bank QIP

Punjab & Sind Bank has fixed a floor price of ₹40.38 per share for its QIP, aiming to raise ₹2,000 crore. The bank has indicated that it may offer a discount of up to 5% on the floor price for the issuance.

The QIP initiatives undertaken by these PSU banks are part of a broader strategy to strengthen their capital base while ensuring compliance with regulatory shareholding requirements.

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