Government likely to permit 4 PSBs to raise funds in first half of FY25
The union government is envisaging providing approval to at least four public sector lenders to upgrade its funds or expand their public float in the first half of the FY25 which in other ways would boost their lending activities and public participation.
The main frame is subject to include PNB which aims for a follow-on public offer [FPO] by September and Central Bank of India which seeks approval for an offer for sale [OFS] to expand its public float. The recent proposal by the Central Bank of India for an OFS was received by the government where it currently holds a 93.08 percent stake.
The listed M-cap of five PSBs including PNB, Bank of Baroda, and IOB have surpassed Rs 1 trillion each in the current financial year. The PNB board has already approved a proposal to raise Rs 7500 crore in equity capital in FY25.Read Also : THDCIL conferred with prestigious 1st Prize for ‘Advancement in Green Mobility
The bank had planned earlier to raise funds in the first funds in the first half of the next fiscal through an FPO or Qualified Institutional Placement [QIP]. An official statement released by Punjab and Sind Bank has mentioned the lender’s planning to raise Rs 250 crore through the QIP route in the next financial year.
The government is anticipating as to recent projections to be dividend income of Rs 1.02 trillion from the RBI and the other public sector financial institutions in the upcoming financial year.Read Also : MECL Drills Past Remarkable Milestone, Surpasses 3 Lakh Meters of Exploratory Drilling
Meanwhile, it is predicted that the current fiscal year estimate for dividend income is most likely expected to exceed the Budget estimate, primarily due to the RBI paying a higher dividend of Rs 87,416 crore in May last year. In the previous fiscal year, the finances accommodated by the government stood at Rs 39,961 crore from RBI and public sector financial institutions.Read Also : HPCL and Birmingham University join hands
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