PNB Board To Consider Raising Capital On July 9

Money & Banking

PTI New Delhi | Updated on July 07, 2020 Published on July 07, 2020

State-owned Punjab National Bank (PNB) on Monday said its board will consider a proposal to raise capital through a mix of both equity and debt on July 9.

Besides, the board will clear opening balance sheet of the amalgamated bank as on April 1, which is post amalgamation of Oriental Bank of Commerce and United Bank of India into PNB, the bank said in a regulatory filing.

The board will consider proposal for raising capital through issue of Basel-III-compliant tier-1 bonds, tier-2 bonds and equity shares by way of private placement, qualified institutions placement, follow-on public offering, rights issue or any other mode or through a combination, it said.

Following the board approval, the resolution will be put for the shareholders’ nod, it added.

PNB is planning to hit capital markets in the fourth quarter of this financial year to raise funds to help meet growth needs and regulatory requirements.

The bank is capitalised with the capital adequacy ratio of 14.14 per cent at the end of March 2020.

PNB amalgamated Oriental Bank of Commerce and United Bank of India with itself effective April 1 this year. With the merger, the bank now has about 11,000 branches, more than 13,000 ATMs, one lakh employees, and a business mix of over ₹18 lakh crore. Total domestic business of PNB at the end of March 2020 stood ₹11.81 lakh crore.

Published on July 07, 2020

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