PNB Seeks Rs 5431 Cr Capital Support From Govt.

Punjab National Bank (PNB) said it planned to seek Rs 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 for considering infusion of Rs 5,431 crore by the government by way of preferential issue of equity share and fixing date of extraordinary general meeting (EGM) for obtaining shareholders’ approval in this regard, PNB said in a filing to stock exchanges.

Earlier, Finance Minister, Mr. Arun Jaitley committed capital support to banks after meeting heads of public sector lenders.

“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.

The government infused Rs 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 Rs 11,336 crore in five state-owned lenders to help them meet the regulatory capital requirement.