Punjab National Bank (PNB) on Monday received shareholders’ nod to issue 10.90 crore equity shares to the Government on a preferential basis.
This shareholder approval — which came at an extraordinary general meeting held here — would enable the public sector lender to issue 10.90 crore shares of a face value of ₹ 2 at a premium of ₹ 156.84 per share.
This preferential issue would lead to fund infusion of ₹ 1,732 crore into the bank from the central government.
Usha Ananthasubramanian, Managing Director & CEO, PNB, told Business Line that the shareholder approval has been obtained for this preferential issue of shares to Government.
Once these shares are issued, the Centre’s equity holding in PNB would increase to 62.08 per cent from the current level of 59.86 per cent.