Government okays Rs 5,500 crore equity infusion into Punjab & Sind Bank

Punjab & Sind Bank logo.

Public sector Punjab & Sind Bank (PSB) on Tuesday said the government has okayed infusion of Rs 5,500 crore capital into the bank in lieu of preferential allotment of shares.

The bank is in receipt of letter dated November 10, 2020 from the Ministry of Finance regarding sanction to infuse an amount of Rs 5,500 crore, it said in a regulatory filing.

The capital infusion, the lender said, is towards the contribution of the central government in the preferential allotment of equity shares of the bank during financial year 2020-21.

The government's shareholding in the bank as of September 30, 2020 stood at 83.06 per cent, as per data on BSE.

Stock of PSB closed 3.50 per cent higher at Rs 11.23 apiece on BSE on Tuesday.