State-owned Punjab & Sind Bank (PSB) on Tuesday said that the government has approved for the infusion of Rs 5,500 crore capital into the bank in lieu of allotment of preferential shares.
The public sector bank in receipt of letter dated 10 November, 2020 from the Ministry of Finance regarding the sanction of infusing an amount of Rs 5,500 crore, PSB said in a regulatory filing.
The lender said that the capital infusion in the bank looks forward for the contribution of the central government through the preferential allotment of equity shares during FY21. As on 30 September, 2020, the government’s shareholding in Punjab & Sind Bank stood 83.06 per cent, as per the data available on BSE.
Earlier for the June quarter, PSB has reported a 5.35 per cent YoY decline in its Net Interest Income (NII) of Rs 537.22 crore, against Rs 567.59 crore in the same period previous year. Quarterly Net Loss was 417.34 per cent down at Rs 156.65 crore in June, 2020, as compared to Rs 30.28 crore in June, 2019. The bank’s operating profit during the quarter stood at Rs 225.91 crore in the year-ago quarter.