The board of Punjab National Bank (PNB) has said that it has approved proposal to seek Rs 5,431 crore capital support from the government. “The capital infusion of Rs 5,431 crore by the Centre would be through preferential allotment of the bank’s equity shares at a price determined as per the regulation,” PNB said in a filing to stock exchanges.
The extra general meeting (EGM) in this regard will be held on October 30, it said. Commenting on the issue, the FM told the media, “Some of them did mention that the PCA (prompt corrective action) guidelines should be revisited because that is indirectly impacting their lending ability and that government should be more upfront in the capital requirement of some of these banks.”
I have assured them that we will immediately look at this subject because we are as keen as them, as every Indian is, that this opportunity is not missed because we want the cycle of high consumption, high growth, NPA recoveries, credit offtake really to be utilised to the fullest in order to help economy,” he had said.