Managing Director and CEO Swarup Kumar Saha said the bank is examining a Qualified Institutional Placement, or QIP. Board clearance is in place, and merchant bankers and legal advisers have been appointed. The fundraise is targeted for the current financial year, with market conditions determining the timing.

Government ownership stands at 93.85%, the largest such holding among public sector banks. SEBI’s minimum public shareholding requirement calls for public investors to own at least 25% of a listed company. Issuing fresh shares could help lower the government’s percentage while bringing money into the bank.

Other lenders with substantial government ownership include Indian Overseas Bank at 92.44%, UCO Bank at 90.95% and Central Bank of India at 81.19%. These banks have until 2026 to comply. Experts anticipate a possible two-year extension, but that remains an expectation rather than a confirmed change.

Separately, Punjab & Sind Bank aims to launch its IFSC Banking Unit at Gandhinagar’s GIFT City by November this year. RBI and IFSCA approvals have been secured. The unit will offer foreign-currency banking, focusing on FCNR(B) deposits and External Commercial Borrowings. Staff and technology vendors have been chosen, while systems integration is underway.