The Alternative Mechanism headed by the finance minister after consultation with Reserve Bank of India has given the go-ahead for the amalgamation.
The government on Friday unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as it looks to boost economic growth from an over six-year low.
Besides, the PNB board cleared a capital infusion of up to Rs 18,000 crore by the government for preferential allotment of equity shares of the bank at a price determined in terms of SEBI regulations.
The government on Friday announced infusion of Rs 16,000 crore in PNB for a smooth and seamless amalgamation.
The Extra General Meeting (EGM) in this regard will be held on October 22 for obtaining approval of shareholders, it said.