PNB infuses capital worth Rs 498.75 cr in PNB Housing Finance Limited

New Delhi: State-owned Punjab National Bank (PNB) in a regulatory filing said that it has infused capital worth Rs 498.75 crores in the Rights Issue of PNB Housing Finance Limited (PNBHFL). As per the filing, the bank has shareholding of 28.15 percent in PNBHFL, which is a housing finance company.

Why did PNB participate in the rights issue?

The filing also explained that the bank wanted to be a promoter of the PNBHFL so it participated in the rights issue to retain the title of the promoter. For this, the bank had to retain more than 26 percent of the shareholding in the PNBHFL. The transaction was done in cash, the filing noted.

"Post allotment in rights issue, the bank's shareholding in PNBHFL reduced from 32.52 percent to 28.15 percent," it said. The transaction was done in cash, it added.

The public sector bank has already got Reserve Bank of India's (RBI) approval to infuse up to Rs 500 crores for subscribing to PNBHFL shares in the proposed rights issue in the letter dated February 6, 2022.

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