Punjab & Sind Bank is planning to raise fresh funds to reduce the government's ownership in the bank. Swarup Kumar Saha, the Managing Director and CEO, confirmed that the bank is looking at a Qualified Institutional Placement (QIP) [a way for companies to raise money by selling shares to large investors like mutual funds]. The bank has already received board approval and has hired merchant bankers and legal experts to manage this process.

Currently, the Government of India owns 93.85% of the bank, which is the highest stake the government holds in any public sector bank. According to rules set by the Securities and Exchange Board of India (SEBI), all listed companies must have at least 25% of their shares held by the public. This is known as Minimum Public Shareholding (MPS). To reach this level, the government needs to sell or dilute a large portion of its current holdings.

The bank plans to start this fundraise during the current financial year, though the exact timing depends on how the stock market performs. Other public sector banks like Indian Overseas Bank (92.44% government stake), UCO Bank (90.95%), and Central Bank of India (81.19%) are also in a similar situation. While the government has given these banks until 2026 to meet the rules, experts believe this deadline might be extended by another two years to give them more time.

Apart from raising money, Punjab & Sind Bank is expanding its operations into international banking. The bank aims to open an IFSC Banking Unit (IBU) at GIFT City in Gandhinagar by November this year. It has already received the green light from the Reserve Bank of India (RBI) and the International Financial Services Centres Authority (IFSCA). This new unit will act like a foreign branch, allowing the bank to handle global transactions and foreign currency accounts.

The GIFT City branch will focus on products like Foreign Currency Non-Resident (Bank) deposits and External Commercial Borrowings [loans taken from foreign lenders]. MD Saha stated that the bank has already selected the staff and the technology vendors for this project. IT systems are currently being integrated to ensure the branch is ready for its November launch.

For bank officers and aspirants, these changes signal a period of growth and professionalization. As the bank reduces government stake and moves into GIFT City, it will need to compete more closely with private players. This means a greater focus on market-driven strategies and international banking standards. Customers might also see new foreign currency services and improved digital banking as the bank upgrades its technology for global operations.

In the coming months, the industry will be watching the success of the QIP. If the bank successfully attracts large institutional investors, it will boost confidence in public sector banking. At the same time, the launch of the GIFT City branch will be a key milestone in the bank's plan to increase its balance sheet size and earn more revenue from foreign exchange business.