Welcome to Contify Banking
Last Update: Mon, May 21, 2012 7:36 AM IST (2:06 AM GMT)
IN THIS STORY
TOPICS
COMPANIES
INDUSTRIES
New Delhi: India's second largest state-run lender Punjab National Bank Wednesday said it plans to raise around Rs 28.64 billion via preferential allotment of equity shares to the government and the country's largest life insurer Life Insurance Corp of India (LIC).
Accordingly, the bank will issue 12.8 million shares to the government and 15.84 million shares to LIC at Rs 1,003.69 apiece, Punjab National Bank said in a statement filed with the stock exchanges.
The bank will seek shareholders' approval on March 20, 2012 for the same, it said.
Shares of Punjab National Bank ended at Rs 1,022 on the Bombay Stock Exchange today, down 4.62% from the previous close.
Recently, Finance Minister Pranab Mukherjee affirmed that the government is committed to adequately capitalize public sector banks in compliance with Basel III norms, which envisage more strict regulations for capital adequacy.
The government is expected to infuse a total of Rs 150-160 billion into select state-run banks in the current financial year 2011-12 to shore up their tier-I capital adequacy ratio to 8%.
Recently, India's largest lender State Bank of India (SBI) announced that the government will infuse about Rs 79 billion into the bank via a similar route.
Other public sector lenders like Indian Overseas Bank, Union Bank of India and Bank of Maharashtra are also in the fray for capital infusions by the end of this fiscal year.
RELATED COMPANIES
Punjab National Bank is an India-based company. The company was established in 1895. It is a company started before India attained her independence. Punjab National Bank offers personal banking, ...
Read More..RELATED STORIES
Follow us:
Contify is a leading content aggregation and an emerging business information company based in India. Launched in April 2009, the company has partnerships with over 280 leading and niche publications of the country, and distributes over 3,000 business news stories to global information databases like Dow Jones Factiva, Thomson Reuters, LexisNexis and Bloomberg on a daily basis.
Contify also has a strong in-house editorial team, which covers information on a range of industry verticals like banking, energy and retail as well as key government policies related to India’s business environment. The company's portfolio of information products is aimed at helping business professionals keep themselves up-to-date with the important news and events in India’s corporate arena.
