The board of Punjab National Bank (PNB) will consider raising Rs 18,000 crore capital infusion in the next meeting on Thursday.
The board of Punjab National Bank (PNB) will consider raising Rs 18,000 crore capital infusion in the next meeting on Thursday. On August 31, the bank had informed exchanges that it would consider infusion upto Rs 16,500 crore by the government through preferential issue of equity shares and fixing date of extraordinary general meeting (EGM) for obtaining shareholders approval in this regard at a price determined in terms of the market regulator SEBI. “In continuation to our intimation dated 31.08.2019, the exchange is hereby informed that the board shall consider capital infusion upto Rs 18000 Crore (Rupees Eighteen Thousand Crore Only) in its meeting scheduled on 5th September 2019,” PNB had said in a regulatory filing. Shares of PNB ended the trade on last trading day on Friday at Rs 65, down 0.050 points, or 0.077 per cent on BSE.
In the exchange filing on August 31, PNB had also said, “the meeting of the board of directors of the bank is scheduled to be held on 5th September, 2019” for considering some key agenda. The board will meet to “consider the amalgamation of the Oriental Bank of Commerce and United Bank of India into Punjab National Bank”, the statement said.
Meanwhile, finance minister Nirmala Sitharaman said Oriental Bank of Commerce and United Bank would be merged into Punjab National Bank (PNB) to create the country’s largest state-run bank after SBI, with a total business of close to Rs 18 lakh crore. Similarly, Syndicate Bank will be amalagamated with Canara Bank, and the broader entity will be the fourth-largest public-sector bank (PSB). Union Bank, Andhra Bank and Corporation Bank will be merged and emerge as the fifth-largest PSB. And the amalgamation of Indian Bank and Allahabad Bank will create the seventh-largest state-run bank.