PNB seeks Rs 1,500 cr capital support from govt
Punjab National Bank sought Rs 1,500 crore capital support from the government to enhance its capital base. Government's stake will rise from 58 percent.
July 26, 2013 / 20:01 IST
Punjab National Bank today said it has sought Rs 1,500 crore fund support from the government to enhance its capital base.
"We have approached the government and sought Rs 1,500 crore in the current fiscal," PNB Chairman and Managing Director K R Kamath said after announcing first quarter numbers here.Also read: Hope to maintain margin at 3.5% going ahead: PNBThe government holds 58 percent stake in PNB and with the fresh capital infusion it 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 in the 2013-14 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 phase manner," he had said while presenting the Union Budget 2013-14 in Parliament in February.Implementation of Basel III capital regulations envisage 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. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
