PNB gets Rs 28.16 bn as part of capital infusion plan via equity shares

The preferential allotment of equity shares to the government will be made after completing the process of regulatory approvals

State-owned PNB on Monday said it has received Rs 28.16 billion as capital infusion from the government via preferential allotment of equity shares.

"The bank, as per...Department of Financial Services notification, has received amount of capital infusion of Rs 28.16 billion towards contribution of the central government," PNB said in a regulatory filing.

The preferential allotment of equity shares to government will be made after completing the process of regulatory approvals, Punjab National Bank said.

Allahabad Bank had informed last week that it received Rs 17.90 billion as capital infusion from the government.

The government has approved capital infusion in five public sector lenders. The other three in this pack are Andhra Bank -- Rs 20.19 billion, Indian Overseas Bank -- Rs 21.57 billion and Corporation Bank -- Rs 25.55 billion.

It is also likely that 2-3 more banks may be added to the list. The government had announced Rs 2.11 trillion capital infusion programme for public sector banks (PSBs) last October.

As per the plan, PSBs were to get Rs 1.35 trillion through re-capitalisation bonds, and the balance Rs 580 billion through raising of capital from the market.

Of the Rs 1.35 trillion, the government has already infused about Rs 710 billion through recap bonds and the balance would be done during the current fiscal, 2018-19.

PNB stock closed 4.57 per cent up at Rs 78.95 on BSE.