PNB to raise Rs 1,000 cr Tier II capital

New Delhi, Jan 31 (UNI) Punjab National Bank CMD S C Gupta today announced the bank will bring down government equity in it from 57 per cent to 51 per cent, raising nearly Rs 1,000 crore in the current fiscal and continue expansion of overseas branches.

''A full branch will be opened each in London in the United Kingdom, Singapore and Hong Kong for which clearences are being sought from the Reserve Bank of India and local authorities,'' Mr Gupta told reporters at a press conference here to announce Q3 results.

Mr Gupta said the PNB management is still toying with the idea whether to open a branch in Toronto or Vancouver in Canada.

He said the funds will be raised from the market partly for funding the establishment of overseas branches. The capital raised will be in the nature of Tier II.

This will be the second offloading of the government equity by one of the largest public sector banks in less than two years.

Earlier to this, PNB's follow-on public issue in March 2005 brought down the government holding from 80 per cent to 57 per cent. The bank had entered the stock markets in 2002.

Mr Gupta said there was a popular demand to open a branch in Canada as also other places.

UNI