Punjab & Sind Bank gets shareholders nod for Rs 990 cr preferential issue

NEW DELHI: State-owned Punjab & Sind Bank (PSB) on Tuesday said its shareholders have approved raising funds of up to Rs 989.99 crore through a preferential issue of shares to the government and the Life Insurance Corporation.

The shareholders at the general meeting approved issuance of shares to the government and LIC on preferential basis at Rs 85.46 apiece, PSB said in a statement.

Following this, the government will pick up shares up to Rs 894.69 crore and LIC up to Rs 95.3 crore, aggregating to Rs 989.99 crore, it said.

The bank proposes to issue 1.12 crore fresh shares to LIC while 10.4 crore equity would be issued to the government. At present, the government holds 82.07 per cent in the bank. The bank had raised Rs 470.82 crore in 2010 through an IPO, which was subscribed 50.75 times.

Shares of PSB today closed at Rs 74.05, down 0.67 per cent on the BSE.