Government Approves Rs 5,500 Crore Equity Infusion Into Punjab & Sind Bank
People wait in line to exchange Indian five hundred and one thousand rupee banknotes at a Punjab & Sind Bank branch in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

Government Approves Rs 5,500 Crore Equity Infusion Into Punjab & Sind Bank

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Public sector Punjab & Sind Bank on Tuesday said the government has approved 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 Nov. 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 Sept. 30, 2020 stood at 83.06%, as per data on BSE.

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

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