State owned Punjab & Sind Bank on Saturday (21th November, 2020) said that its board has approved a proposal to raise up to Rs 5,500 crores by issuing shares on a preferential basis.
The approval from government is in line to infuse an amount of Rs 5,500 crores in the bank towards contribution of the Centre in the preferential allotment of equity shares during Financial Year 2020-21.
Bank in a regulatory filing said, “The board has cleared agenda to “offer, issue, create and allot equity shares up to Rs 5,500 crore including share premium to the Government of India by way of preferential issue of equity shares”.
The fundraising will help bank to meet its regulatory and growth capital.
Shares of Punjab & Sind Ban rose 1.25% to Rs 11.38 a unit on the BSE. Even the benchmark Sensex ended for 0.65% higher at 43,882.25 points.