Shares of state-run Punjab & Sind Bank are down as much as 20% on Tuesday, April 1, along with fellow lender UCO Bank, whose shares have also declined nearly 7%.

The lender on Friday announced that it has raised ₹1,219 crore by selling shares to eligible institutions as part of its Qualified Institutional Placement (QIP) exercise.

Majority of the shares issued were to Life Insurance Corporation of India Ltd

., while SBI Life Insurance was issued 8.2% of the total QIP shares on offer.

Punjab & Sind Bank has also issued shares to fellow lenders Central Bank of India and Indian Overseas Bank as part of the QIP. The other two lenders also closed their respective QIPs last week.

UCO Bank also announced the closure of its QIP last week, where most of the shares were issued to LIC and SBI-backed funds.

CNBC-TV18 had reported on Friday that 25% of the over ₹6,000 crore that these PSU Banks raised through their QIP exercise came from LIC.

At the end of the December quarter, the government had a 98.25% stake in Punjab & Sind Bank.

In an interaction with the media on March 24, SEBI Chairperson Tuhin Kanta Pandey said that there has been a vast improvement in PSU companies achieving their Minimum Public Shareholding (MPS) norms. However, he also said that it will be very difficult for some PSUs to achieve that mark.

Shares of Punjab & Sind Bank are trading 19.2% lower at ₹35.23, which is a 52-week low for the stock. The stock is also trading below its QIP issue price of ₹38.37.