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Punjab National Bank seeks Rs 1,500 crore capital support from govt

To enhance its capital base, state-owned Punjab National Bank said that it has sought fund support of Rs 1,500 crore from the government.

BT Online Bureau   New Delhi     Last Updated: July 27, 2013  | 13:02 IST

To enhance its capital base, state-owned Punjab National Bank (PNB) on Friday said that it has sought fund support of Rs 1,500 crore from the government.

PNB Chairman and Managing Director K R Kamath said, "We have approached the government and sought Rs 1,500 crore in the current fiscal."

Government of India currently holds 58 per cent in the bank and with the fresh capital infusion, its shareholding will go up further.

Last fiscal, the bank got Rs 1,250 crore through preferential issue of shares to the government.

The government has already announced that the public sector banks will get Rs 14,000 crore additional capital from government during the current fiscal.

"Before end of March 2013, we should provide Rs 12,517 crore to infuse additional capital into 13 public sector banks. In 2013-14, I propose to provide a further amount of Rs 14,000 crore for capital infusion," Finance Minister P Chidambaram had said in his Budget speech.

"We should ensure that public sector banks always meet Basel III regulations as they come into force in a phased manner," he had said while presenting the Union Budget 2013-14 in Parliament.

Implementation of Basel III capital regulations envisages enhancing requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31, 2018.

With PTI inputs


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