PNB to dilute govt holding to 51%

Punjab National Bank (PNB) today said it will dilute the government holding in the bank from 57.1% to 51% this year, in order to meet Basel II norms and expansion plans.

"We need capital during this year, therefore, we need to dilute the government shareholding," S C Gupta, chairman and managing director, PNB said.

The bank may come out with a public offer, he said adding, "I do not think that the money will be raised from the overseas market."

Elaborating on capital raising plans for this year he said the bank will need around Rs 2,000 crore during the current fiscal for overseas as well domestic expansion plans, and for meeting Basel II norms.

By June 30, the bank would raise Rs 500 crore through tier II bonds, Gupta added.