Punjab and Sind Bank
Punjab & Sind Bank is a major bank in Northern India. Of its almost 900 branches and offices spread throughout India, almost 400 are in Punjab state, though the bank's corporate headquarters is in New Delhi.
Punjab & Sind Bank provides various banking products and services. Its deposit products include current, savings, fixed, term, and recurring deposits. The company’s loan portfolio comprises housing, trade, automobiles, consumer durables, education, and personal loans, as well as term loans, short-term loans, cash and export credit, working capital financing, bill discounting, and letters of credit and guarantee.
Punjab & Sind Bank also offers non-resident Indian services consisting of non resident (external) rupee accounts, foreign currency non-resident accounts, ordinary non-resident accounts, investments on repatriation and non-repatriation basis, investments in immovable property, and transfer of funds facility through Western Union. In addition, the company provides syndication of loans and other fee-based services, such as cash management and remittance services; direct financing to farmers for production, as well as indirect financing for infrastructure development and credit to suppliers of agricultural inputs; automated teller machine (ATM) and credit cards; locker facilities; treasury services; electronic fund transfer services; and agency functions for insurance, distribution of mutual funds, and pension and tax collection services.
Punjab & Sind Bank was founded in 1908.
Broker Tips On Punjab & Sind Bank (PSB) IPO
SP Tulsian | KR Choksey | Motilal Oswal | Unicon Wealth | Hem Securities | Anagram
Objects of the issue:» Augment its capital base to meet the future capital requirements arising out of the growth in its assets due to the growth of the Indian economy.
» General Corporate Purposes
» Meeting the expenses of the Issue
21, Rajendra Place,
New Delhi 110 008
Contact Person and Compliance Officer: Mr. A.P.S. Teji
Tel: (+91 11) 2581 2922
Fax: (+91 11) 2581 2922
Phone:(+91 11) 2572 0849
Fax:(+91 11) 2578 1639
|Issue Price||Rs. 113 - Rs. 120|
|Isuue Type||100% Book Building Issue|
|Issue Size||4,00,00,000 Equity Shares of Rs. 10|
|Lot Size||» Minimum : 50 Shares|
» Maximum : 1650 (for Retail)
|Max Amount for Retail Investor||200000|
|Lead Manager||SBI Capital Markets Ltd, ENAM Securities Pvt. Ltd & ICICI Securities Ltd|
|Registrar||Link Intime India Pvt Ltd|
|Registrar Phone||(+91 22) 2596 0320|
|Application Multiple||50 and in multiples there off starting with atleast 50 shares|
|Cheque in Favour of||"Escrow Account - Punjab & Sind Bank Public Issue - R" For Retail Bidders|
|Listing Open||Rs. 146.10 / Rs. 144 (BSE/NSE)|
|Listing Close||Rs. 127.05 / Rs. 127.15 (BSE/NSE)|
|Listing High||Rs. 149.70 / Rs. 146.70 (BSE/NSE)|
|Listing Low||Rs. 126.20 (BSE/NSE)|
|Application Forms Download||Download|
|ASBA E-Form Download||Download|
|IPO Grading Download||Download|
Punjab and Sind Bank Financial Details:
|Net Interest Income||780.60||1183.94||1011.86||785.79||731.81|
|Net Total Income||996.93||1576.07||1395.40||1094.93||959.52|
|Operating Profits Before EO||512.58||868.00||728.09||517.63||462.35|
|Operating profits after EO before Provisions & Contingencies||512.58||868.69||728.09||517.63||468.64|
|Provisions & Contingencies||112.91||211.10||82.88||79.74||73.36|
|Profit Before Tax||399.67||657.59||645.21||437.89||395.28|
|Provision for tax||123.29||156.46||210.80||48.32||5.01|
|* Annualized on post-IPO equity of Rs. 223.06 crore. Face Value: Rs. 10 Figures in Rs. crore LP : Loss to profit ; PL : Profit to loss|
Total income of the bank has grown at CAGR of 31% from FY 2007 to FY 2010. Over the same period, the CAGR in net interest income, PBT before provisions and net profit stand at 17.4%, 22.9% and 8.8%, respectively.
Between FY 2007 to FY 2010, deposits have grown at a CAGR of 36.5% to Rs. 49155.08 crore as on 31st March 2010. Term deposit forms 75% of the total deposit base at end of FY 2010. As such, the proposition of low cost deposit has come down from 46% at end of FY 2007 to 25% at end of FY 2010.
For the year ended March 2010 (FY 2010), it reported a 38% rise in the business mix to Rs. 81794.19 crore. There was a 15% increase in net profit to Rs. 501.13 crore on the back of a 17% increase in the net interest income (NII) to Rs. 1183.94 crore. NIM for FY 2010 declined from 3.24% to 2.67% due to dual effect of increase in high cost deposits and decline in yield.
The credit-deposit ratio declined from 70.99% to 66.6%. Share of investment in total assets marginally increased from 31% to 32% due to investment in bonds and certificates of deposits whereas share of advances to total assets remained in range of 58% to 60%.
For the half-year ended September 2010, the bank reported a net profit of Rs. 276.38 crore on the back of Rs. 780.6 crore of NII. Total business stood at Rs. 88659.83 crore, with deposits of Rs. 52945.08 crore and advances of Rs. 35714.75 crore. NIM stood at 3.0%. Asset quality improved with gross NPA coming down from 1.01% to 0.92% and Net NPA from 0.49% to 0.44% on y-o-y basis. CAR stood at 13.04% as on 30 September 2010.
Between FY 2007 to FY 2010, advances have grown at a CAGR of 40.7% to Rs. 32639.11 crore as on 31 March 2010. As on 31st March 2010 retail lending accounts for 15%, corporate around 51% while others including priority sector is 33%. For H1 FY 2011, advances stood at Rs. 35714.75 crore of which retail lending accounts for 15%, corporate around 57% while others including priority sector is 28%
Asset quality has improved over the years. The net NPA ratio has come down from 8.4% in 2005 to presently 0.44% for H1 FY 2011. As of September 30, 2010, concentration of NPAs was mostly in gems and jewellery (18%), textiles (3%), food processing (1%), rubber and rubber products (0.22%), metal and metal products (6%) and vegetable oils (10%). As of September 30, 2010, approximately 23% of its gross NPAs were concentrated in the real estate sector.
As on 31 March 2010, total restructured assets increased by 19% to Rs. 636.16 crore forming 1.94% of gross advance and 29% of tangible net worth. As on 30 September 2010, total restructured assets stood at Rs. 971 crore forming 2.71% of loan asset. The provision coverage including technical write-offs stood at 89.62% as on 31st March 2010. For 30 September 2010, the coverage ratio was at 86.83%.
Punjab and Sind Bank Grey Market Price - Premium - Rates
|Date||GM Premium||Kostak Rate|
|09-Dec-2010||Rs. 25 - 30||Rs. 2300 - 2700|
|10-Dec-2010||Rs. 30 - 35||Rs. 2200 - 2500|
|13-Dec-2010||Rs. 30 - 35||Rs. 2300 - 2500|
|14-Dec-2010||Rs. 35 - 38||Rs. 2200 - 2500|
|15-Dec-2010||Rs. 33 - 36||Rs. 2200 - 2500|
|16-Dec-2010||Rs. 31 - 34||Rs. 2200 - 2400|
|20-Dec-2010||Rs. 30 - 32||----|
|21-Dec-2010||Rs. 30 - 32||----|
|22-Dec-2010||Rs. 30 - 33||----|
|23-Dec-2010||Rs. 30 - 33||----|
|24-Dec-2010||Rs. 30 - 32||----|
|27-Dec-2010||Rs. 30 - 32||----|
|28-Dec-2010||Rs. 30 - 31||----|
|29-Dec-2010||Rs. 30 - 31||----|
Punjab and Sind Bank Subscription Details:
Punjab and Sind Bank Basis of allotment:
(This is only an advertisement for Information purposes not for publication or distribution, directly or indirectly outside india, and not a prospectus announcement.)
PUNJAB & SIND BANK
Constituted under the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (Bank Acquisition Act) on April 15,1980. The Bank
was incorporated on June 24,1908, as The Punjab and Sind Bank Limited', with its
registered office at Hall Bazar, Amritsar, Punjab, India. The Bank was nationalised under
the Bank Acquisiton Act on April 15,1980 and its name was changed to 'Punjab & Sind
Bank'. For details of changes in the head office of the Bank, see "History
and Certain Corporate Matters" on page 134 of the Prospectus. Head
Office: 'Bank House', 21, Rajendra Place, New Delhi 110 008, India Tel:
(+91 11) 2572 0849 Fax: (+91 11) 2578 1639. Contact Person and
Compliance Officer: Mr. A.P.S. Teji Tel: (+91 11) 2581 2922 Fax:
(+91 11)2581 2922 E-mail: firstname.lastname@example.org
BASIS OF ALLOTMENT
PUBLIC ISSUE OF 4,00,00,000 EQUITY SHARES OF RS. 10 EACH (THE "EQUITY SHARES") FOR CASH AT A PRICE OF RS.120* PER EQUITY SHARE OF PUNJAB & SIND BANK ("THE BANK" OR "THE ISSUER") AGGREGATING RS. 470.82 CRORE (THE "ISSUE"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 3,80,00,000 EQUITY SHARES (THE "NET ISSUE") AND A RESERVATION OF 20,00,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED IN THE RED HERRING PROSPECTUS AND THE PROSPECTUS) (THE "EMPLOYEE RESERVATION PORTION"), AT THE ISSUE PRICE. THE ISSUE SHALL CONSTITUTE 17.93% OF THE POST-ISSUE SHARE CAPITAL OF THE BANK. THE NET ISSUE SHALL CONSTITUTE 17.04% OF THE POST-ISSUE SHARE CAPITAL OF THE BANK.
Issue opened on December 13,2010. Issue closed on December 15,2010 for QIB Bidders and on December 16,2010 for Non QIB Bidders
THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH. THE ISSUE PRICE IS RS 120* AND IS 12.0 TIMES THE FACE VALUE OF THE EQUITY SHARES.
Discount of Rs. 6, i.e. 5% to the Issue Price was offered to Retail Individual Bidders "Retail Discount") and Eligible Employees (the "Employee Discount"), respectively. The excess amount paid at the time of Bidding shall be refumled to Retail lndividual Bidaers and Eligjble Employees within 12 working days of the Bid/issue closing date.
Promoter: The President of India, acting through the Ministry of Finance, Government of India
The Equity Shares of the Bank are proposed to be listed on the Bombay Stock
Exchange Limited ("BSE") and the National Stock Exchange of India Limited
("NSE") and the trading will commence on December 30,2010.
The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on December 27, 2010.
A. Allocation to Employees (After Technical Rejections)
B. Allocation to Retail Individual Bidders (After Technical Rejections)
C. Allocation to Non-Institutional Bidders (After Technical Rejections)
D. Allocation to QIBs
The Board of Directors of the Issuer at its Meeting held on December 27,2010 has taken on record the basis of allocation of shares approved by the Designated Stock Exchange viz., Bombay Stock Exchange Limited ("BSE") and has authorized the Corporate Action for the transfer of the shares to various successful applicants. The refund order and allotment advice and/ or notices have been dispatched to the address of the investors as registered with the depositories, on or prior to December 28,2010. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Account details as registered, if any, with the depositories. The shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. Further, the instructions to Self Certified Syndicate Banks have been dispatched / mailed on December 27,2010. The Bank has filed listing applications with the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE) vide letters dated December 28,2010.
INVESTORS PLEASE NOTE
Link Intime India Private Limited
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF PUNJAB & SIND BANK,
Punjab & Sind Bank is proposing to make, subject to market conditions and other
considerations, a public offer of securities and has filed a Prospectus with the
Securities & Exchange Board of India ("SEBI"), the National Stock Exchange
of India Limited and the Bombay Stock Exchange Limited. The Prospectus is available on the
website of the SEBI at www.sebi.gov.in as
well as on the websites of the book running lead managers at www.enam.com, www.sbicaps.com
Investors should note that investment in equity shares involves a high degree of risk and
for details relating to the same, see the section titled "Risk Factors" of the
Prospectus. This advertisement does not constitute an offer of securities for sale or the
solicitation of any offerto buy securities in any jurisdiction, including the United
States. Securities may not be offered or sold in the United States absent registration
under theU.S. Securities Act of 1933, as amended (the "US Securities Act"), or
an exemption therefrom. The Equity Shares have not been and will not be registered under
the U.S. Securities Act or any state securities laws in the United States and may not be
offered or sold in the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the U.S. Securities Act and
in accordance with any applicable U.S. state securities laws. The Equity Shares are being
offered and sold only outside the United States in compliance with Regulation S under the
U.S. Securities Act and the applicable laws of each jurisdiction where such offers and
sales occur. No money, securities or other consideration from any person inside
Forecasts for Punjab and Sind Bank
|Subscription||» It should subscribe 35 to 50+ times in the retail category.|
|Allotment||» Updated : 1 out of 4 investor would get 50 shares for the application of Rs. 2 lakh. |
» Allotment will be lottery based.
» Updated : 1 out of 8 investor would get 50 shares for the application of Rs. 1 lakh.
» 1 out of 44 investor would get 50 shares for the application of minimum 50 shares.
|Listing||» It may list around Rs. 145 to 155. |
» In the good market conditions it can see the intraday levels of Rs. 170+.