P&S Bank revamp plan okayed
The government paved the way for the proposed initial public offer(IPO) of Punjab & Sind Bank (P&S Bank) by clearing its equity restructuring plan.
By ET Bureau |
New Delhi: The government on Thursday paved the way for the proposed initial public offer(IPO) of Punjab & Sind Bank (P&S Bank) by clearing its equity restructuring plan.
The Union Cabinet, which met here under the chairmanship of Prime Minister Manmohan Singh, approved the revamp of the capital structure of the bank.
���Restructuring would enable the bank to go in for an IPO at a reasonable premium for raising additional capital from the market,��� science and technology minister Kapil Sibal told reporters. Restructuring of the equity capital will be carried out by converting Rs 160 crore into ���innovative perpetual debt instrument��� and Rs 200 crore into ���perpetual non-cumulative preference shares���. The bank will retain Rs 183.06 crore as equity capital. Mr Sibal said the enhanced capital will enable the bank to comply with Basel II norms.
The Union Cabinet, which met here under the chairmanship of Prime Minister Manmohan Singh, approved the revamp of the capital structure of the bank.
���Restructuring would enable the bank to go in for an IPO at a reasonable premium for raising additional capital from the market,��� science and technology minister Kapil Sibal told reporters. Restructuring of the equity capital will be carried out by converting Rs 160 crore into ���innovative perpetual debt instrument��� and Rs 200 crore into ���perpetual non-cumulative preference shares���. The bank will retain Rs 183.06 crore as equity capital. Mr Sibal said the enhanced capital will enable the bank to comply with Basel II norms.
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