Business / PNB to raise up to ₹10,000 crore via issue of equity shares, bonds

Punjab National Bank (PNB) has said it will raise up to ₹10,000 crore through issue of equity shares and bonds. The bank added that it will seek shareholder nod to raise up to ₹7,000 crore in equity capital in its upcoming annual general meeting. PNB amalgamated Oriental Bank of Commerce and United Bank of India with itself in April 2020.

india.com : Jul 10, 2020, 06:09 PM
New Delhi: The Board of Punjab National Bank (PNB) on Thursday approved the proposal to raise up to Rs 10,000 crore through equity and debt.

In a regulatory filing, the bank said that it will seek shareholders’ approval for raising of equity capital for an amount up to Rs 7,000 crore in the forthcoming Annual General Meeting (AGM).

It said that board has approved “raising of capital through issue of equity shares and Basel III Compliant Tier 2 Bonds by way of Private Placement, Qualified Institutions Placement, Further Public Offer, Rights Issue or any other mode or through a combination thereof up to an amount of Rs 10,000 crore and seeking approval of the shareholders for raising of equity capital for an amount up to Rs 7,000 crore in the forthcoming AGM”.

The board on Thursday also approved the appropriation of accumulated losses of Rs 28,707.92 crore from the Share Premium Account of the amalgamated bank (PNB) and seeking approval of the shareholders in the forthcoming AGM for the same. The state-run bank will hold its 19th AGM on August 4, through video conference.