PNB to dilute govt holding to 51, share offer likely

The bank may come out with a public offer, he said adding, 8220;I do not think that the money will be raised from overseas market, it will be raised domestically.8221; Elaborating on capital raising plans for this year he said, the bank will need around Rs 2,000 crore during the current fiscal for overseas as well domestic expansion plans and meeting Basel II norms.

By June 30 the bank would raise Rs 500 crore through Tier II bonds, Gupta added.

The bank has posted a 17.55 per cent decline in net profit at Rs 238 crore for the fourth quarter ending March 31, as compared to Rs 288.67 crore for the same period last year.

The country8217;s second largest public sector lender has reported a net profit of Rs 1,540.08 crore for the year ended March 31, as against Rs 1,439.31 crore for the year ended March 31, 2006 and the total income during the period under consideration increased to Rs 12,579.78 crore from Rs 10,857.65 crore. The bank has declared a 60 per cent final dividend of Rs 6 on shares of Rs 10 each for the financial year 2006-07, subject to shareholders approval.