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PNB raises Rs1,590 cr by issuing pref shares to LIC-news29032012


State-owned Punjab National Bank ( PNB) has raised Rs1,589.90 crore by issuing shares to Life Insurance Corporation ( LIC) on preferential basis.


On receipt of allotment money of Rs1,589.90 crore from LIC, the bank has allotted 1.58 crore (1,58,40,607) shares of the face value of Rs10 each at a premium of Rs993.69 to the insurer on preferential basis, the bank said in a filing to the BSE.

PNB is in the process of issuing up to 1.28 crore shares to the government, which holds 58% in the bank.

Last year, PNB got a capital infusion of Rs184 crore from the government.

In 2010-11, the government provided capital support to the tune of Rs20,157 crore to public sector banks.
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