New Delhi: Punjab National Bank (PNB) Wednesday said it plans to seek ₹ 5,431 crore capital support from the government a day after finance minister Arun Jaitley assured state-owned banks of all support from the government.
The meeting of the bank’s board will take place Thursday for considering infusion of ₹ 5,431 crore by the government by way of preferential issue of equity share and fixing date of extra-ordinary general meeting (EGM) for obtaining shareholders’ approval in this regard, PNB said in a filing to stock exchanges. The finance minister Tuesday committed capital support to banks after meeting heads of public sector lenders.
ALSO READ: PNB, Indian Bank to offload entire stakes in credit info firm Experian
“Some of them did mention that the PCA (prompt corrective action) guidelines should be revisited because that is indirectly impacting their lending ability and that government should be more upfront in the capital requirement of some of these banks.
“I have assured them that we will immediately look at this subject because we are as keen as them, as every Indian is, that this opportunity is not missed because we want the cycle of high consumption, high growth, NPA recoveries, credit offtake really to be utilised to the fullest in order to help economy," he had said.
ALSO READ: PNB shareholders approve ESPS scheme, ₹ 2,816 crore capital infusion
The government infused ₹ 2,816 crore as capital infusion via preferential allotment of equity shares this month to meet regulatory ratios.
The government in July decided to infuse ₹ 11,336 crore in five state-owned lenders including PNB, Corporation Bank and Andhra Bank to help them meet regulatory capital requirement.
The infusion was part of remaining ₹ 65,000 crore out of ₹ 2.11 trillion capital infusion over two financial years.
ALSO READ: PNB invites bids from ARCs/FIs for 21 NPA accounts to recover ₹ 1,320 crore
The government announced ₹ 2.11 trillion capital infusion programme October last year. As per the plan, the public sector banks (PSBs) were to get ₹ 1.35 trillion through re-capitalisation bonds, and the balance ₹ 58,000 crore through raising of capital from the market.
Out of the ₹ 1.35 trillion, the government has already infused about ₹ 71,000 crore through recap bonds in the banks and balance would be done during this fiscal.
Besides, PSBs are also planning to tap the markets to raise more than ₹ 50,000 crore this fiscal to shore up their capital base for business growth and meeting regulatory global risk norms.
This story has been published from a wire agency feed without modifications to the text.