Punjab National Bank has mopped up Rs 1,589.90 crore by issuing shares to Life Insurance Corporation (LIC) on preferential basis. The bank has allotted 1.58 crore shares of the face value of Rs 10 each at a premium of Rs 993.69 to LIC after receiving allotment money of Rs 1,589.90 crore.
PNB is in the process of issuing up to 1.28 crore shares to the government, which holds 58 percent 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.
