State-owned Punjab & Sind Bank plans to raise Rs 2,000 crore in the second half of this fiscal via Qualified Institutional Placement (QIP) to fund business growth.

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"The board has already given approval, and merchant bankers should be on-boarded by August," Punjab & Sind Bank managing director and CEO Swarup Kumar Saha told PTI.

The fundraising can be concluded in the second quarter or third quarter, depending on market conditions.

The QIP would help improve the Capital Adequacy Ratio of the bank, he said.

The bank's capital adequacy ratio stood at 17.10 per cent at the end of March 2024.Besides, it would help bring down the government's holding in the bank.

The government of India holds a 98.25 per cent stake in Punjab & Sind Bank.

Asked about the loan growth outlook for the current financial year, Saha said the bank expects asset book to grow by 12-14 per cent, and in this, retail, agriculture and MSME (RAM) should witness a growth of 15-18 per cent.

On the deposit side, he said the bank anticipates liabilities to grow between 8 and 10 per cent during the ongoing financial year.

Saha said the bank has taken several customer-centric initiatives to improve satisfaction levels.

As part of this initiative, the bank is in the process of transforming 50 identified branches into model or smart branches.

Saha said the lender has also introduced a PSB Pink debit card powered by RuPay for women with a host of benefits.

The bank also started demat services through wealth-tech partner Fisdom, which allows its customers to make investments in the equity market and purchase mutual funds.

The bank also launched a series of customer-centric digital offerings through its omnichannel PSB UNiC App designed to ensure secure and hassle-free banking services.

Some of the offerings include opening savings accounts through video KYC, Bulk NEFT/RTGS, access to free CIC credit score and UNiC App registration through Aadhaar OTP.

These new product initiatives, he said, are a testament to the bank's dedication to making a positive societal impact and creating a more sustainable future for all.