Punjab & Sind Bank to allot shares worth ₹5,500 cr to govt in lieu of capital1 min read . Updated: 23 Feb 2021, 06:43 PM IST
- The EGM, the bank said, will take place through video conferencing
- Punjab & Sind Bank said its net loss in December quarter 2020-21 spiralled to ₹2,375.53 crore on higher provisions for bad loans
Punjab & Sind Bank will allot preferential shares to the government next month in lieu of ₹5,500 crore capital infusion into the bank. A general meeting of the shareholders of the bank is scheduled on 25 March, 2021 for preferential issue of equity shares to the government up to ₹5,500 crore, the bank said in a regulatory filing.
The EGM, the bank said, will take place through video conferencing and other audio visual means for passing the resolution for issuing shares to the government.
In September, the government had approved a ₹20,000 crore fund through Parliament, as part of the Supplementary Demands for Grants for 2020-21, for capital infusion into public sector banks (PSBs). Of this, ₹5,500 crore was approved to be infused into P&SB.
As far as the residual ₹14,500 crore for capital infusion is concerned, the government has to take a call in the ongoing quarter.
Punjab & Sind Bank said its net loss in December quarter 2020-21 spiralled to ₹2,375.53 crore on higher provisions for bad loans. The lender had posted a net loss of ₹255.49 crore in the same period a year ago. In September quarter also, the bank had a loss of ₹401.27 crore.
Total income in the quarter under review also fell to ₹1,982.52 crore from ₹2,077.01 crore in the same period of 2019-20, the lender said in a regulatory filing.