PNB raises Rs 1,590 crore by issuing preferential shares to LIC

State-owned Punjab National Bank (PNB) has raised Rs 1,589.90 crore by issuing shares to Life Insurance Corporation (LIC) on preferential basis.

On receipt of allotment money of Rs 1,589.90 crore from LIC, the bank has allotted 1.58 crore (1,58,40,607) shares of the face value of Rs 10 each at a premium of Rs 993.69 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 per cent in the bank.

Last year, PNB got a capital infusion of Rs 184 crore from the government.

In 2010-11, the government provided capital support to the tune of Rs 20,157 crore to public sector banks.

Source: EconomicTimes