Further investment in Punjab National Bank by FIIs only after prior approval of RBI

RBI has said that the aggregate foreign share holding in the Punjab National Bank has reached 18% of its paid up capital.  This is less than 2% of the sectoral cap of 20% permitted in Public Sector Banks.  So, RBI has said that any further purchase of equity shares on behalf of Foreign Institutional Investors / Non Resident Indians and for Persons of Indian Origin who have permission under the Portfolio Investment Scheme will now be allowed only after obtaining prior approval of Reserve Bank of India.  Incidentally, as per Share Holding pattern filed with bourses, the foreign holding of PNB was only 14.89% as of March 2009.