State-owned Punjab National Bank (PNB) has raised Rs 1,589.90 crore by issuing shares to Life Insurance Corporation (LIC) on preferential basis.
On receipt of allotment money of Rs 1,589.90 crore from LIC, the bank has allotted 15.8 million (1,58,40,607) shares of the face value of Rs 10 each at a premium of Rs 993.69 to the insurer on preferential basis, the bank said in a filing to the Bombay Stock Exchange (BSE).
PNB is in the process of issuing up to 12.8 million shares to the government, which holds 58% in the bank.
Last year, PNB got a capital infusion of Rs 184 crore from the government.
In 2010-11, the government provided capital support to the tune of Rs 20,157 crore to public sector banks.
The state-owned Life Insurance Corporation (LIC) has pumped in Rs 2,137 crore in four public sector banks through the preference share route.