New Delhi: (Banking news) Public sector bank Punjab & Sind Bank (PSB) on Tuesday said the government has okayed infusion of Rs 5,500 crore capital into the bank in lieu of preferential allotment of shares. The bank is in receipt of the letter dated November 10, 2020, from the Ministry of Finance regarding sanction to infuse an amount of Rs 5,500 crore, it said in a regulatory filing.
The capital infusion, the lender said, is towards the contribution of the central government in the preferential allotment of equity shares of the bank during the financial year 2020-21.
The government's shareholding in the bank as of September 30, 2020, stood at 83.06 per cent, as per data on BSE.
Shares of PSB closed 3.50 per cent higher at Rs 11.23 a piece on BSE on Tuesday.
Punjab & Sind Bank is a government-owned bank (83.06%) which has its headquarters in New Delhi. The bank has overall 1559 branches which are widely spread across India, out of which 623 branches are in Punjab state.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)