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Punjab National Bank’s (PNB) board of directors on Monday gave their nod for a preferential allotment of equity shares to the government for a sum of Rs 2,816 crore.
Shareholders’ nod for this preferential allotment to the Central Government will be obtained on September 18, the date of the upcoming annual general meeting, the bank said in a filing with the stock exchanges.
It may be recalled that the Finance Ministry had in mid-July given its nod for capital infusion of Rs 11,336 crore in five weak public sector banks, including Punjab National Bank, to help them tide over any situation of breach of regulatory capital requirements.
The five banks that are getting capital support under this round are Punjab National Bank (₹2,816 crore); Indian Overseas Bank (₹2,157 crore); Andhra Bank (₹2,019 crore); Corporation Bank (₹2,555 crore); and Allahabad Bank (₹1,790 crore).
These banks, including PNB, which has been hit by the ₹13,000-crore Nirav Modi scam, are facing tough times in servicing the additional tier-I bonds, which form part of their capital structure.
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