New Delhi: State-owned Punjab National Bank (PNB) said in a regulatory filing that the "Board of the Bank has approved participation in the proposed Rights Issue of Druk PNB Bank Ltd (DPNBL), an overseas subsidiary of the Bank, for an amount of Rs 72,82,80,000 at premium of Rs 7 i.e., Rs 17 per share." Further, it said that the number of shares will be 4,28,40,000.

The filing also noted that PNB has 51 percent shareholding in the Druk PNB Bank Ltd and DPNBL has earned a net profit of Rs 23.59 crores. It also said that "transaction shall be a related party transaction and will be undertaken on an arm's length basis."

"The indicative time period for completion of the Rights Issue is by the end of August 2023," the filing said, adding that "after participation in the rights issue of DPNBL, the shareholding of the bank will still remain the same."

"In terms of RBI notification DOR.CAPREC. No72/21 06.201/2021- governmental or 22 dated December 8, 2021 regarding 'General Permission for infusion of capital in overseas branches and subsidiaries and retention/repatriation/transfer of profits in these centres by banks incorporated in India' approval is required only from the Board of the Bank. Further, reporting shall be done within 30 days of such capital infusion to the Department of Regulation, RBI with a copy to the Department of Supervision, RBI," the filing added.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)