Money & Banking

Mega bank merger: PNB convenes EGM on Nov 4

K.R. Srivats New Delhi | Updated on October 02, 2019 Published on October 02, 2019

File photo   -  AFP

Punjab National Bank (PNB) has convened an extraordinary general meeting (EGM) of its shareholders on November 4 to consider approval of the amalgamation of Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself.

This EGM, which was to be held on October 22, had recently been deferred. It has now been decided to hold the EGM on November 4 at the bank’s head office, sources said.

The EGM is also expected to approve the Centre’s capital infusion of about Rs 18,000 crore in PNB through preferential allotment of equity shares.

The earlier EGM date of October 22 had to be postponed as PNB was going through a leadership transition and a new Managing Director and CEO was to be appointed, it is learnt. The Centre, on Tuesday, appointed SS Mallikarjun Rao, Managing Director & CEO of Allahabad Bank, as the next MD & CEO of Punjab National Bank, replacing incumbent MD & CEO Sunil Mehta, who demitted office on Monday on superannuation.

Government investment

Meanwhile, PNB, on September 30, received from the Government a capital infusion of Rs 3,000 crore towards the Centre’s contribution in the preferential allotment of equity shares (special securities/bonds) of the bank.

It may be recalled that PNB had, in end-September, given its nod for raising capital of up to Rs 3,000 crore in the form of Additional Tier-I Basel-III-compliant perpetual bonds.

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Published on October 02, 2019
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