The board of directors of Punjab National Bank (PNB), the country’s second largest bank, on Thursday gave its nod for the bank to undertake capital raising of up to ₹10,000 crore.
This is proposed to be done through issue of equity shares and Basel-III compliant Tier-2 bonds by way of private placement, Qualified Institutional Placement, further public offering, Rights Issue or any other mode or through a combination of these modes, sources said.
The Board also approved the opening balance sheet of the Amalgamated Bank as on April 1, 2020 i.e., post amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank.
At the ensuing Annual General Meeting, approval of the shareholders will be sought for appropriation of accumulated losses of ₹28,707.92 crore from the share premium account of the Amalgamated Bank ( PNB).