State-owned Punjab National Bank (PNB) today said its shareholders have approved raising capital up to Rs 2,875 crore by preferential issue of share to government and LIC.
The shareholders at the general meeting yesterday approved issuance of 128 million shares to the government on preferential basis, PNB said in a statement issued to the Bombay Stock Exchange (BSE) today.
They also approved issuance of up to to 158 million equity shares of face value of Rs 10 each to LIC, on preferential basis, at a premium of Rs 993.69 determined as on February 17, it said.
The government holds 58% stake in PNB at present.
Following the all necessary regulatory approvals the bank would be able to raise Rs 2,875 crore by March 31.
Last year, PNB got a capital infusion of Rs 184 crore from the government.
The state-owned Life Insurance Corporation (LIC) has pumped in Rs 2,137 crore in four public sector banks through the preference share route.