State-owned Punjab & Sind Bank (BSE:533295) plans to raise INR 2,500 million through share sale to institutional investors in the third quarter of the current fiscal. "The bank has got approvals for capital raising of INR 2,500 million via Qualified Institutional Placement (QIP) in the next quarter," Punjab & Sind Bank Managing Director Swarup Kumar Saha told PTI. It will help achieve the twin objective of capital raising and dilution of the government's holding in the bank, he said.

Government of India holds a 98.25% 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.