In the third quarter of the current fiscal year, the state-owned Punjab & Sind Bank intends to generate Rs 250 crore through the sale of shares to institutional investors. Punjab & Sind Bank managing director Swarup Kumar Saha stated, "The bank has received approvals for capital raising of Rs 250 crore via Qualified Institutional Placement (QIP) in the upcoming quarter. According to him, it will assist in achieving the twin goals of increasing capital and decreasing the government's ownership stake in the bank.

The government of India holds a 98.25 percent stake in the bank, which was listed on the stock exchanges in 2010. He said that the government's nod is also in place for the capital raising. The bank had written to the Centre seeking its approval for capital raising in May this year. As part of a strategy to increase touch points and brand visibility, Saha said the bank is aiming for 2,000 branches and as many ATMs in the country in the next three years. The addition of branches would help mobilize low-cost deposits and also increase penetration of loan products, he said.

"We are trying to build operational efficiency more so that I can reduce my cost and increase my fee income. We are moving to very granular areas like increasing ATM network, improving digital banking experience," Saha said. He said the ATM network can itself be a profit center because an outside customer pays about Rs 17 per transaction for the use of an ATM. The bank is in the process of upgrading its core banking solution (CBS), which would help the digital journey much better and also bring in efficiency, he said.