The board of Punjab & Sind Bank has approved a proposal to raise up to Rs 5,500 crore by issuing shares on a preferential basis.
The approval is in line with the government sanction to infuse an amount of Rs 5,500 crore in the state-run bank towards contribution of the centre in preferential allotment of equity shares during 2020-21.
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 bank said in a regulatory filing on Saturday.
The fundraising will help bank meet its regulatory and growth capital requirements.
On Friday, shares of Punjab & Sind Bank rose 1.25% to Rs 11.38 apiece on the BSE even the benchmark Sensex ended the day 0.65% higher at 43,882.25 points.
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