The Punjab & Sind Bank is raising ₹2,000 crore during the current quarter from Qualified Institutional Placement, as a way of strengthening the financials of the bank, yet bringing the government holding at the institution.
Managing Director and Chief Executive Officer Swarup Kumar Saha described the QIP as a strategic approach to increase the bank’s capital adequacy ratio with stability by end-March 2025. The government now holds a stake of 98.25% in the bank. This round of fund raising is likely to bring down that stake by nearly 3-4%, which should be in consonance with regulatory requirements for PSBs.
The decision to raise funds has come on the back of a strong financial performance by the bank. In the third quarter of 2024, Punjab & Sind Bank reported a net profit of ₹282 crore.
This is over double the profit of ₹114 crore recorded during the same period last year. Bad loans have also seen a significant drop and better asset quality is part of the reasons for the improvement.
This development marks a much-awaited milestone in the growth cycle at Punjab & Sind Bank, marking its steps to enhance its operational and financial resources and continue sustainable operations in the long-run.
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JSW Steel Subsidiary set to Acquire Thyssenkrupp Electrical Steel India
Published on: January 20,2025.By: M Vishnu
JSW Steel subsidiary, Jsquare Electrical Steel Nashik, has welcomed the deal to buy the electrical steel business of Germany-based thyssenkrupp for ₹4,051.40 crores. The company is a joint venture between JSW Steel and Japan-based JFE Steel, which has undertaken this deal to increase its market share and expand its presence in the electrical steel segment by increasing its portfolio and market reach.
JSW Steel reported a sharp fall in its profits for July-September 2024, with the net profit being down by 85% year on year to ₹404 crore. Total income had declined and crude steel production rose by 7% to 6.77 million tonnes.
The increasing net debt has now risen to ₹85,098 crore as of September 2024 as the burden of the ongoing capital projects, including this acquisition. Cost-cutting efforts by JSW Steel have helped it reduce FY25 capital expenditure to ₹16,000-17,000 crore from an initial ₹20,000 crore.
Though this acquisition comes with its set of challenges, it testifies to JSW Steel’s growth and innovation in a niche area, and the company is all set to become a long-term market leader.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
Also read: SEBI introduces new daily disclosure of information ratio for mutual fund schemes.
Published on: January 19, 2025 at 10.00 PM GMT.
As stated in Bhagavad Gita : (Bhagavad Gita 6.5)
मनः शष्ठानि संख्याय तस्य चित्तं निबोधत।
The mind is the friend of the conditioned soul, and it is also the enemy.
21th January is celebrated as National Hug Day!
