Punjab & Sind Bank's Rs 3,000 Cr QIP Plan Boosts PSU Bank Index 2%

• Punjab & Sind Bank's board will consider raising up to Rs 3,000 crore via Qualified Institutional Placement (QIP) on January 21, 2026.
• The announcement led to a 2% rise in the Nifty PSU Bank index from its intraday low on December 30.
• Funds from the QIP are intended to meet Basel III capital regulations, improve Capital Adequacy, and fund general business needs.
• Earlier, the government offloaded stakes in Bank of Maharashtra and Indian Overseas Bank to meet SEBI public shareholding norms.
• An analyst predicts PSU bank shares will remain volatile, with future performance being stock-specific based on earnings and policy cues.

Why It Matters: Punjab & Sind Bank's QIP plan fuels PSU bank rally, but future volatility expected.