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Thursday, September 06, 2007

Punjab & Sind Bank IPO likely next fiscal

State-owned Punjab and Sind Bank (PSB) may come up with an initial public offering (IPO) sometime next fiscal on the back of improved current year earnings and a planned capital restructuring that is awaiting Government nod, its Chairman and Managing Director, Mr R.P. Singh, has said.

“We have covered a lot of ground in the last two years (with respect to net profits). In 2007-08, our net profit will be significantly better than last fiscal’s. This fiscal’s earnings performance on a restructured equity capital would boost the book value of shares and help the bank command good premium from investors in the IPO,” Mr Singh said.

PSB reported a net profit of Rs 218 crore and Rs 108 crore in 2006-07 and 2005-06 respectively.

Restructure proposal

A capital restructuring proposal to convert a portion of the equity capital into perpetual preference shares is before the Finance Ministry. PSB had a paid-up capital of Rs 743.06 crore as on March 31, 2007.

Mr Singh made it clear that the bank was comfortably placed on the capital front for meeting its growth needs for the current fiscal. “If at all we need capital, it will be for future growth and not for this year. It is for the future that we are looking at an IPO,” he said, reports The Hindu Business Line.

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