Punjab National Bank receives Rs 2,816 crore as part of government's capital infusion plan

The government has approved capital infusion in five public sector lenders, namely PNB, Allahabad Bank, Andhra Bank, Indian Overseas Bank and Corporation Bank.

Press Trust of India July 23, 2018 20:58:49 IST
Punjab National Bank receives Rs 2,816 crore as part of government's capital infusion plan

State-owned Punjab National Bank (PNB), on Monday, said it has received Rs 2,816 crore as capital infusion from the government via a preferential allotment of equity shares. "The bank, as per...Department of Financial Services notification, has received amount of capital infusion of Rs 2,816 crore towards contribution of the central government," PNB said in a regulatory filing.

The preferential allotment of equity shares to the government will be made after completing the process of regulatory approvals, Punjab National Bank said. Allahabad Bank had informed last week that it received Rs 1,790 crore as capital infusion from the government.

The government has approved capital infusion in five public sector lenders. The other three in this pack are Andhra Bank -- Rs 2,019 crore, Indian Overseas Bank -- Rs 2,157 crore and Corporation Bank -- Rs 2,555 crore.

It is also likely that two or three more banks may be added to the list. The government had announced Rs 2.11 lakh crore capital infusion programme for public sector banks (PSBs) last October.

As per the plan, PSBs were to get Rs 1.35 lakh crore through re-capitalisation bonds, and the balance Rs 58,000 crore through raising of capital from the market.

Of the Rs 1.35 lakh crore, the government has already infused about Rs 71,000 crore through recap bonds and the balance would be done during the current fiscal, 2018-19.
PNB stock closed 4.57 per cent up at Rs 78.95 on the BSE.

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