PNB board gives nod to Centre’s ₹5,908-crore capital infusion

K. R. Srivats Updated - February 27, 2019 at 09:27 PM.

Funds to be pumped in via preferential allotment of equity shares

FILE PHOTO: The logo of Punjab National Bank is seen on the facade of its office in Mumbai, India, February 21, 2018. REUTERS/Danish Siddiqui/File Photo

Punjab National Bank’s board has approved the proposed capital infusion of ₹5,908 crore by the Central government.

This will be done through the preferential allotment route, and the extraordinary general meeting (EGM) for shareholders’ approval will be held on March 28, a PNB official said.

It may be recalled that the Centre had, last week, approved a ₹48,239-crore recap of 12 public sector banks, including PNB. The bank has got Centre’s capital support, although it is not under the RBI’s Prompt Corrective Action (PCA) framework.

The capital infusion in PNB is intended to ensure that the bank remains above the regulatory capital norms of PCA. PNB had, in the just-concluded December quarter, bounced back into the black, reporting a net profit of ₹246.51 crore.

Published on February 27, 2019 15:52