According to data compiled by The Economic Times, banks are preparing to raise around Rs 40,000 crore in collective equity funds in the second half of this fiscal year. The move is intended to strengthen balance sheets and facilitate expansion plans.
The Central Bank of India and AU Small Finance Bank also plan to raise Rs 5,000 crore each through QIPs. AU Small Finance Bank plans to raise an additional Rs 6,000 crore through debt financing. Meanwhile, RBL Bank plans to raise Rs 3,500 crore through institutional placement, its first share issuance since 2021, and another Rs 3,000 crore through debt securities via private placement.
Shareholder approval for these fundraising efforts is expected to be sought at the upcoming annual general meetings of PNB, Union Bank of India, Bank of Maharashtra, and Central Bank of India.
The news report highlighted the urgent need for funds, particularly for Punjab National Bank, which has experienced a 5% sequential growth rate. With the government owning more than 75% of some banks and others, such as RBL Bank and AU Small Finance Bank, needing growth capital, there is a clear push for fundraising.
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