PNB Gilts Ltd

PNB Gilts Ltd

PNB Gilts Ltd is a leading primary dealer in the Government Securities Market. The company undertakes more than 90% of their operations in Government Securities. The range of product and services offered by the company includes Treasury Bills Central Government Dated Securities State Government Securities PSU Bonds Inter-Corporate Deposits CSGL accounts Money market instruments Mutual Fund Distribution and Investment/ trading in Equity and Equity derivatives. In addition they also offer advisory services to our clients to manage the government securities portfolio. The company is a subsidiary of Punjab National Bank.PNB Gilts Ltd was incorporated ion the year 1996 as a wholly owned subsidiary of Punjab National Bank with an initial paid up capital of Rs 50 crores. Reserve Bank of India introduced the system of Primary Dealers with a view to strengthen the institutional infrastructure of Government Securities market. Six entities were granted licenses of which the company was one among them. In the year 1998 the company received the certificate from RNI to carry on the business of a Non-Banking Finance Company.In a short period of three years the company emerged as a frontrunner in the G-Secs market and established a formidable reputation for itself with a secondary market. The company continued their track record of profitability with Consistent track record of dividend payment.In July 2000 the company came with an IPO of Rs 3.5 crore shares at an offer price of Rs 30 per share aggregating Rs 105 crore. This increased the paid up capital of the company to Rs 135.01 crore and reduced the holding of Punjab National Bank to 74.07%.In December 2002 the company diversified their activities in merchant banking and got license from SEBI. During 2003-04 they initiated select merchant banking like Placement of bonds and Commercial papers. Also they forayed into fee-based activities through mutual fund distribution.During the year 2004-05 the company forayed into newer fee based activities such as project appraisal loan syndication feasibility studies and corporate advisory services. During the year 2005-06 they undertook several marketing initiatives to further develop non-wholesale clientele. Also they conducted seminars workshops and lectures for cooperative banks RRBs and PFs to create awareness about government securities market During the year 2006-07 the company also started trading operations in equity/ equity derivatives in line with central bank's permission to Primary Dealers to diversify into newer areas.During the year 2009-10 the company discontinued their Merchant Banking activities with effect from March 15 2010. They also closed their Kolkata & Bangalore branches with effect from March 30 2010 and the public/ clients of these regions will be served from HO at Delhi.During FY 2019-20 the Company received the highest credit ratings from credit rating agencies - ICRA and CRISL as under - a. `ICRA A1+' assigned to Rs. 500 crore Commercial Paper programme of the Company. `CRISIL A1+' assigned to Rs. 500 crore (enhanced from Rs. 250 crore from January 30 2019) Commercial Paper Programme of the Company. The Company issued commercial papers and as on March 31 2020 outstanding value of commercial papers of the Company was Rs. 500 crore.