Punjab & Sind Bank, the only unlisted state-owned lender, has got market regulator Sebi's approval for its estimated Rs 600-crore initial public offer (IPO) likely to hit markets by November-end.

The Securities and Exchange Board of India (Sebi) yesterday gave clearance to the draft prospectus filed by Punjab & Sind Bank, market sources said.

The bank proposes to issue up to 4 crore equity shares of Rs 10 each for cash at price to be discovered through a 100 per cent book building process.

According to sources, the IPO is likely to hit markets by November end or early next month.

The government would offload about 17.9 per cent of its stake through IPO and post-offer, its holding would come down to about 82 per cent.

The fund proceeds would be utilised for business expansion. At the same time, the bank plans to increase its branch network from 918 to 1,000 by the end of March, 2011.

Currently, the government owns 100 per cent stake in the bank and is the only unlisted bank among 19 nationalised banks in the country.

The bank had filed its draft red herring prospectus with Sebi on August 26.

In 2009-10, the bank had posted an 18 per cent jump in net profit to Rs 508.8 crore, from Rs 431.1 crore in the previous year.

Total income rose by 19 per cent to Rs 4,345.9 crore, while net interest income grew by 17 per cent to Rs 1,183.9 crore and business rose by 37.9 per cent to Rs 81,894 crore during the 2009-10 financial year.

In its effort to get higher participation from the bank's employees, Punjab & Sind Bank is facilitating in opening demat accounts for its 8,000 staff.

The bank proposes to reserve 20 lakh equities for subscription by the eligible employees, as per details available with the draft prospectus filed with the Sebi.