NEW DELHI: Punjab & Sind Bank will allot preferential shares to the government next month in lieu of Rs 5,500 crore capital infusion into the bank.
An extraordinary general meeting (EGM) of the shareholders of the bank is scheduled on March 25, 2021 for preferential issue of equity shares to the government up to Rs 5,500 crore, the bank said in a regulatory filing.
The bank said that the EGM will take place through video conferencing and other audio visual means for passing the resolution for issuing shares to the government. In September, the government had approved a Rs 20,000 crore fund through Parliament, as part of the Supplementary Demands for Grants for 2020-21, for capital infusion into public sector banks (PSBs).
Of this, Rs 5,500 crore was approved to be infused into P&SB. As far as the residual Rs 14,500 crore for capital infusion is concerned, the government has to take a call in the ongoing quarter. Shares of Punjab & Sind Bank closed 5.07 per cent down at Rs 16.65 apiece on the BSE.