Money & Banking

PNB’s board will consider capital infusion of ₹18,000 cr on September 5

Our Bureau New Delhi | Updated on September 03, 2019 Published on September 02, 2019

It will also consider amalgamation of Oriental Bank of Commerce and United Bank of India with itself.

The board of directors of Punjab National Bank (PNB) will on Thursday (September 5),  consider the proposal for capital infusion of up to ₹18,000 crore in the bank by the government.

The board will also consider the amalgamation of Oriental Bank of Commerce and United Bank of India with PNB.

PNB had earlier said that its board would consider capital infusion of ₹16,500 crore by the government in its board meet on Thursday.

Read also: Govt banks on big bang mergers as GDP tanks

“The board will consider capital infusion of up to ₹16,500 crore by the government by way of preferential issue of equity shares and fixing the date of Extraordinary General Meeting (EGM) for obtaining shareholders’ approval in this regard at a price determined in terms of SEBI (ICDR) regulations,” PNB had said in a BSE filing. However, PNB has now informed the stock exchanges on September 2 that the capital infusion could be up to ₹18,000 crore.

This proposed capital infusion of up to ₹18,000 crore would come as a big booster dose for PNB, which has turned the corner in recent years after  the ₹13,000-crore Nirav Modi and Mehul Choksi-perpetrated scam that shook the bank in 2018.

It may be recalled that PNB has, with the approval of the RBI, made provisions (over several quarters) for the entire ₹13,000 crore that the bank lost in the Nirav Modi scam.

Published on September 02, 2019
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