PNB shareholders approve sell of 10 cr shares to employees; Rs 2,816 cr capital infusion by govt

The bank informed shareholders that PNB has been working steadily to get back into shape after being hit by the Nirav Modi fraud earlier this year.

Press Trust of India September 18, 2018 17:56:34 IST
PNB shareholders approve sell of 10 cr shares to employees; Rs 2,816 cr capital infusion by govt

New Delhi: Shareholders of Punjab National Bank (PNB) on Tuesday cleared proposal for selling 10 crore equity shares to the employees of the bank and Rs 2,816 crore capital infusion by the government.

The shareholders at the annual general meeting of the PNB held here gave permission to offer, issue and allot up to 10 crore of equity shares of face value of Rs 2 to employees under Employee Stock Purchase Scheme (ESPS).

The scheme involves issuing 10 crore shares to the current employees of PNB, the bank's managing director Sunil Mehta said at the AGM.

PNB shareholders approve sell of 10 cr shares to employees Rs 2816 cr capital infusion by govt

Representational image. AFP

The exact contours for the ESPS scheme will be decided by the remuneration committee of the PNB but the shareholder approval paves the way for implementing the ESPS scheme, he said.

The Shareholders also voted to clear the issuance of over 31 crore shares to the government as part of recapitalisation of PNB by the Union government.

Welcoming the infusion of capital in the bank, PNB non-executive Chairman Sunil Mehta said: "The government's recapitalisation plan for the public sector banks will further strengthen their balance sheets in addition to expected stronger performance in 2018-19".

The bank informed shareholders that PNB has been working steadily to get back into shape after being hit by the Nirav Modi fraud earlier this year.

"The incident at Brady House branch, Mumbai, was an unfortunate, one-off incident caused by few employees in a single branch. As soon as the incident came to light, the Bank acted swiftly, reported the same to the regulatory authorities & law enforcement agencies, apprised fellow bankers of the developments and put in place internal checks and controls to thwart such happenings in future," Mehta said.

The board of PNB assured shareholders that with business back on track, increased recovery of NPA’s and provisioning for liability arising out of Nirav Modi fraud done, the bank is back on the path of profitability and this will soon reflect in the balance sheet as well.

Under Mission Parivartan, he said, the bank is transforming itself and implementing change through People, processes and products, which includes tighter audit controls as well as checks and balances in the lending process.

Updated Date:

also read

Dominican govt tells court to reject Choksi's habeas corpus petition, says he illegally entered country
India

Dominican govt tells court to reject Choksi's habeas corpus petition, says he illegally entered country

Choksi, who is wanted in India in an alleged Rs 13,500 crore loan fraud case, filed the habeas corpus petition claiming he was abducted and forcefully brought to the Caribbean island nation, local media reported

CBI, MEA approach Dominica HC to be made party to Mehul Choksi case seeking his return to Antigua and Barbuda
India

CBI, MEA approach Dominica HC to be made party to Mehul Choksi case seeking his return to Antigua and Barbuda

If the Dominica High Court admits the two affidavits filed by the CBI and the MEA, it will pave way for noted lawyer Harish Salve to plead India's case in the country

Rights of 'Indian citizen' Mehul Choksi will be respected, court will decide future course, says Dominica PM
World

Rights of 'Indian citizen' Mehul Choksi will be respected, court will decide future course, says Dominica PM

Choksi, wanted in a Rs 13,500-crore bank fraud case in India, was held in Dominica after his disappearance from Antigua and Barbuda on 23 May