The board of Punjab & Sind Bank has approved capital infusion of up to Rs 800 crore by the government, the public sector bank said on Tuesday.
"The board of directors of the bank has approved the capital infusion up to Rs 800 crore by government by way of preferential issue of equity shares," Punjab & Sind Bank said in a filing to the stock exchanges.
While annnoucing a mega bank merger plan on Aug. 21, the government had initiated an immediate rollout of the Rs 70,000 crore PSU bank recapitalisation plan announced in Union Budget 2019-20.
Punjab & Sind Bank will be one of the 12 public sector banks that will remain as standalone entities after the PSU bank mergers.
On Tuesday, Punjab & Sind Bank shares rose 1.75 percent to Rs 20.30 apiece on the BSE while the benchmark Sensex gained 0.02 percent to end the day at 39,097.14 points.
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