1. Banks seek shareholders’ nod for Rs 5,934 crore capital infusion

Banks seek shareholders’ nod for Rs 5,934 crore capital infusion

Four public sector banks, including PNB and BoB, today sought shareholders' approval for capital infusion of Rs 5,934 crore by issuing preferential shares to the government.

By: | New Delhi | Published: August 22, 2015 10:34 PM
capital infusion

Four public sector banks, including PNB and BoB, today sought shareholders’ approval for capital infusion of Rs 5,934 crore by issuing preferential shares to the government. (Reuters)

Four public sector banks, including PNB and BoB, today sought shareholders’ approval for capital infusion of Rs 5,934 crore by issuing preferential shares to the government.

Punjab National Bank (PNB), in a regulatory filing, said it will hold an extra-ordinary general meeting (EGM) on September 28 to approve issuance of equity shares worth Rs 1,732 crore to the government on preferential basis.

“… issuance of equity shares of face value of Rs 2 each, at such price as on relevant date determined as per Sebi regulations, on preferential basis in favour of government of India, subject to necessary approvals, up to an amount of Rs 1,732 crore,” the filing said.

The government last week had announced capital infusion in 13 public sector banks, including PNB, SBI, IDBI, Bank of Baroda and Canara Bank.

The government would infuse Rs 20,088 crore in a month’s period.

In the capital infusion plan, Indian Overseas Bank will get Rs 2,009 crore, Bank of Baroda (Rs 1,786 crore) and Dena Bank (Rs 407 crore).

To get shareholders approval for issuance of equity shares to government, Indian Overseas Bank will convene its EGM on September 23 and Bank of Baroda on September 28, respectively.

As per the BSE filing, Dena Bank will seek the approval on August 20.

Among others, State Bank of India will get Rs 5,531 crore, Bank of India (Rs 2,455 crore), IDBI Bank (Rs 2,229 crore), Canara Bank (Rs 947 crore), Union Bank of India (Rs 1,080 crore), Andhra Bank (Rs 378 crore), Corporation Bank (Rs 857 crore), Bank of Maharashtra (Rs 394 crore) and Allahabad Bank (Rs 283 crore).

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