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The four lenders raised a total sum of ₹6,155 crore through the QIP exercise, of which, ₹1,525 crore have come by selling shares to LIC.
While Indian Overseas Bank closed its QIP earlier in the week, its peers, UCO Bank, Central Bank of India, along with Punjab Sind Bank announced the closure of their respective QIPs on Thursday night.
Indian Overseas Bank raised ₹1,436 crore through its QIP, of which, it issued shares to LIC along with LIC Pension Fund worth ₹600 crore. IIFL Finance and NPS Trust were others who were issued more than 5% of the shares as part of the QIP.
Punjab and Sind Bank raised ₹1,219 crore as part of its share sale exercise, wherein LIC was issued shares ₹200 crore. LIC also invested ₹487 crore and ₹238 crore in the QIPs of UCO Bank and Central Bank of India, who raised ₹2,000 crore and ₹1,500 crore via their respective QIPs.
| Bank | Funds Raised (₹ Cr) | LIC Investment (₹ Cr) |
| Indian Overseas Bank | 1,436 | 600 |
| UCO Bank | 2,000 | 487 |
| Central Bank of India | 1,500 | 238 |
| Punjab & Sind Bank | 1,219 | 200 |
Interestingly, Punjab and Sind Bank and Central Bank of India have also issued shares to their fellow state-run lenders as part of their fund raising exercise. While Punjab and Sind Bank has issued shares to Central Bank of India and Indian Overseas Bank, Central Bank of India has issued shares to PNB, Canara Bank and Bank of Baroda.
These four PSU Banks carried out the QIP exercise as part of their efforts to bring down government shareholding in compliance with Minimum Public Shareholding norms. As per the December shareholding, the government shareholding in these banks is in excess of 90%.
Shares of Indian Overseas Bank ended 6.6% lower on Friday, while those of UCO Bank, Punjab and Sind Bank, and Central Bank of India fell between 2.5% to 3%.
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