Punjab National Bank (PNB) issued a statement to the stock exchanges, describing its plans to seek Rs. 5,431 crores capital support from the government after the government committed capital support to state-owned banks after meeting heads of public sector lenders.
The board meeting of the bank will take place today for considering an infusion of Rs. 5,431 crores by the government by way of preferential issue of equity share and fixing date of the extraordinary general meeting (EGM) for obtaining shareholders’ approval in this regard.
The government had earlier infused Rs. 2,816 crores in PNB as capital infusion via preferential allotment of equity shares this month to meet regulatory ratios as part of Rs. 2.11 trillion capital infusion programme the government announced October last year.
The government also decided to infuse Rs. 11,336 crores in July, in five state-owned lenders including PNB, Corporation Bank and Andhra Bank to help them meet the regulatory capital requirement.
The infusion was part of remaining Rs. 65,000 crore out of Rs 2.11 trillion capital infusion over two financial years. As per the plan, the public sector banks (PSBs) were to get Rs. 1.35 trillion through recapitalisation bonds, and the balance ?58,000 crore through raising of capital from the market.