New Delhi: R.P. Singh, Chairman and Managing Director, Punjab and Sind Bank (PSB) has said that the bank may come up with an initial public offering (IPO) sometime next year on the back of enhanced current year earnings and an intended capital reconstituting, which is looking for Government nod.

Mr. Singh stated, “We have covered a lot of ground in the last two years (with respect to net profits). In 2007-08, our net profit will be significantly better than last fiscal’s. This fiscal’s earnings performance on a restructured equity capital would boost the book value of shares and help the bank command good premium from investors in the IPO.”

The bank reported a net profit of Rs 218 crore and Rs 108 crore in 2006-07 and 2005-06 correspondingly.

A capital restructuring plan to alter a part of the equity capital into perpetual preference shares is before the Finance Ministry. PSB had a paid-up capital of Rs 743.06 crore as on March 31, 2007.

Singh clarified that the bank was comfortably positioned on the capital front for meeting its development needs for the recent year.

“If at all we need capital, it will be for future growth and not for this year. It is for the future that we are looking at an IPO,” he added.