Punjab & Sind Bank is set to raise capital through a qualified institutional placement as it aims to reduce government ownership and expand its international footprint with a new IFSC banking unit at GIFT City, UNFOLDING strategic shifts in its growth trajectory.
Punjab & Sind Bank is preparing to raise capital through a qualified institutional placement and other routes as it looks to trim the government’s holding and move towards the minimum public shareholding required for listed companies, managing director Swarup Kumar Saha said. According to the bank, board approval has been secured and merchant bankers and legal advisers have already been appointed, although the timing will depend on market conditions.
The lender is under particular pressure because the government still owns 93.85% of the bank, the highest stake the Indian state holds in any public sector bank. Reuters-equivalent reporting in the financial press has noted that Punjab & Sind is among several state-run lenders still well short of the 25% public float mandated by the Securities and Exchange Board of India, alongside Indian Overseas Bank, UCO Bank and Central Bank of India. Officials have indicated that the broader deadline for state-backed entities to meet the norm may be pushed back again, after an earlier grace period that was already due to end in 2026.
At the same time, Punjab & Sind is pushing ahead with its offshore banking ambitions. The bank has received approval from the International Financial Services Centres Authority to set up an IFSC Banking Unit at GIFT City in Gandhinagar, a move also reported by The Economic Times and Moneycontrol. Saha said the unit is expected to be operational by November, with staff already in place, an IT vendor chosen and systems integration under way.
The new unit is intended to function much like a foreign branch, giving the lender access to foreign currency deposits, external commercial borrowings and trade finance business. That would allow Punjab & Sind to broaden its balance sheet and build a larger international footprint, while supporting the government’s drive to turn GIFT IFSC into a global financial hub.
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