INSUBCONTINENT EXCLUSIVE:
PNB said the capital infusion would be through preferential allotment of equity sharesNew Delhi: State-run Punjab National Bank's board on
Thursday approved a proposal for capital infusion of Rs 5,431 crore from the central government by way of preferential issue of equity
shares.Following the board meeting, the PNB said in a regulatory filing that the capital infusion by the Centre would be through the
preferential allotment of the bank's equity shares at a price determined as per Sebi regulations
obtaining shareholders' approval in this regard will be held on October 30, it said.Earlier this week, Finance Minister Arun Jaitley had
committed capital infusion to banks after meeting chiefs of public sector banks.In July, the government had decided to infuse Rs 11,336
crore in five PSU banks, including PNB, to enable them to meet regulatory capital requirements
This infusion was part of the Rs 65,000 crore remaining out of the Rs 2.11 lakh crore capital infusion over two financial years.In October
last year, the government announced a capital infusion plan worth Rs 2.11 lakh crore for state-run banks struggling with massive accumulated
non-performing assets (NPAs)
Bad loans or NPAs in the overall banking system have touched a staggering Rs 10 lakh crore.As per the capitalisation plan, the PSU banks are
to receive Rs 1.35 lakh crore through recapitalisation bonds, and the balance Rs 58,000 crore is to be raised from the market.
