Modi govt set to infuse Rs 20 billion into PNB to aid bond payment

India is preparing to infuse about Rs 20 billion into Punjab National Bank by next week to help it meet dues on its perpetual bonds, people familiar with the matter said.

India's third-largest state-run lender will issue preferential shares to the government, the people said, asking not to be named as the information isn’t public. This will help restore capital to the level needed to pay the coupon that’s due July 25, they said.

PNB needs to pay about 1.35 billion rupees to cover the 8.98 percent annual interest on Rs 15 billion worth of so-called AT1 bonds sold in July 2017.

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