"One bonus share for every two shares held in PNB Gilts has been approved by our annual general meeting (AGM) held last week," PNB Gilts managing director Arun Kaul said.

The company has proposed a rights issue of one share for every three shares held after the bonus issue, he said adding the entire exercise would be over by September.

Meanwhile, PNB Gilts, a primary dealer in government securities, has also approved its accounts for 1998-99, which saw the net profit touching Rs 42.59 crore. The company has declared a dividend of 22 per cent.

The company said during the first quarter of the current fiscal, the company earned a profit before tax of Rs 21.12 crore on an income of Rs 47.42 crore. Kaul said during the current year, the company expects a profit of around Rs 80 crore.