PNB to honour 'all bonafide LoUs'

State-run Punjab National Bank (PNB) on Friday said that

it will honour "all bonafide Letters of Undertaking (LoUs)".

The assurance was made by the public sector bank's top management during its Extra Ordinary General Meeting (EGM) of shareholders held here.

"Clarifying on questions being raised on the ongoing bank fraud case investigation,

PNB reassured its shareholders, customers, partners and employees on the bank's

capability and capacity to come out of this situation," the bank said in a statement.

Further, the bank outlined a multi-pronged agenda to tighten checks and balances in the system, including "strengthening internal control mechanisms", "extensive outreach to customers, investors and other stakeholders", "focus on Current and Savings Account (CASA)" and "thrust on recovery of bad debts".

In the EGM, the shareholders voted on the issuance of up to 33,49,85,922 equity shares of face value of Rs 2 each fully paid at a premium of Rs.161.38 per share amounting to Rs 5,473 crore to the government on preferential basis.

"The allotment of these preference shares will increase the government's stake in PNB from 57.04 per cent to 62.25 per cent," the statement added.

--IANS

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