Punjab National Bank (PNB)’s share was down as much as 8 per cent at Rs 37.25 after the state-run lender set the floor price for its proposed QIP at Rs 37.35 per share. The bank plans to raise Rs 7,000 crore through the Qualified Institutional Placement (QIP) route this fiscal to shore up its capital base. The Capital Raising Committee of the bank at a meeting held on Tuesday authorized the opening of the QIP issue and approved the floor price at Rs 37.35 per equity share, PNB said in a regulatory filing. The bank may at its discretion offer a discount of not more than 5 per cent on the floor price, it added. PNB said the committee will meet on Friday to consider and determine the issue price for the equity shares, including a discount, if any, to be allotted to Qualified Institutional Buyers, pursuant to the QIP (qualified institutional placement).

The country’s second-largest state-owned lender expects the credit growth to pick up slightly in the second half but it would be less than 5 per cent for the entire fiscal.

The bank has already taken approval from the board for raising Rs 14,000 crore by way of Tier II, Additional Tier 1 (AT-1) bonds and QIP (Qualified Institutional Placement), PNB Managing Director S S Mallikarjuna Rao said last month.

“Of this, Rs 4,000 crore is for Tier II. Against this, we have raised Rs 2,500 crore and remaining Rs 1,500 crore and additional Rs 3,000 crore from AT-1 bonds will be raised before November 30,” he said.

With this fund mobilization, the capital-to-risk-weighted assets ratio, which was at 12.8 per cent at the end of the September 2020 quarter, would go up to 13.5-14 per cent.