State-run Punjab National Bank (PNB) said its board has approved to issue and allot up to 10 crore new shares of the bank in one or more tranches to its employees under Punjab National Bank Employees Share Purchase Scheme (PNB-ESPS). This effort of Punjab National Bank is likely to win the trust of investors in the stock market and is getting considered as a positive effort.
The nomination and remuneration committee will decide all the matters and formulation of the ESPS scheme, PNB said in a regulatory filing.
The Government in March 2017 had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means of capital raise.
The recent Nirav Modi -PNB scam has created strong turbulence in the stock market and PNB’s shares have massively impacted in a negative way. ON such outset, this decision by the authorities are getting considered as major booster for stock market investors towards PNB.