Four public sector banks (PSBs), including PNB and BoB, on Saturday sought shareholders’ approval for capital infusion of Rs5,934 crore by issuing preferential shares to the Government.
Punjab National Bank (PNB), in a regulatory filing, said it will hold an extra-ordinary general meeting (EGM) on September 28 to approve issuance of equity shares worth Rs1,732 crore to the Government on preferential basis.
“Issuance of equity shares of face value of Rs2 each, at such price as on relevant date determined as per Sebi regulations, on preferential basis in favour of the Government of India, subject to necessary approvals, up to an amount of Rs1,732 crore,” the filing said.
The Government last week had announced capital infusion in 13 public sector banks, including PNB, SBI, IDBI, Bank of Baroda and Canara Bank. The Government would infuse Rs20,088 crore in a month’s period. In the capital infusion plan, Indian Overseas Bank will get Rs2,009 crore, Bank of Baroda (Rs1,786 crore) and Dena Bank (Rs407 crore).
To get shareholders approval for issuance of equity shares to the Government, Indian Overseas Bank will convene its EGM on September 23 and Bank of Baroda on September 28, respectively.