Business Standard

PNB to sell stake to LIC for Rs 1,590 cr

Related News

State-owned (PNB) today said it proposed to raise Rs 1,590 crore by selling about 15.8 million shares to LIfe Insurance Corporation of India (LIC).

The bank has also approved fund infusion of Rs 1,285 crore through preferential issue of shares to the government.

The board has approved issuance of up to 15.8 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 being the relevant date as per the Sebi regulations, said in a statement.

It will also issue up to 12.8 million shares to the government. The capital infusion would raise government's stake, from 58% at present, in the bank.

Following the all necessary regulatory approvals the bank would be able to raise Rs 2,875 crore by March 31.

The bank will hold an extraordinary general meeting of shareholders on March 20 to take up approval for issuing fresh shares to the LIC and the government.

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.

Most of the public sector banks got capital support from the government last fiscal. They included Bank of Baroda, Union Bank of India, Oriental Bank of Commerce, UCO Bank and Dena Bank.

Read more on:   
|
|

Read More

Responsible and pragmatic: Amitabh Chaudhry

There has been a high level of focus on financial and capital markets with a slew of measures

Quick Links

More news from Finance Rss icon

Loan scams: Rajan warns banks on outsourcing key internal jobs

Says better project evaluation through improved internal skills is needed

Axis Bank launches e-surveillance facility for ATMs

Under the facility, ATM premises will be monitored 24x7 from a centralised security operation centre

Rajan bats for more freedom to state-run banks

Says they should be seen as independent entities and not an extension of the govt

Back to Top