This is to make you informed about the infuse of Rs 500 crore into Punjab National Bank Housing Finance. Yes, this is true, Punjab National Bank’s board has agreed to infuse the whopping amount of Rs 500 crore. But why did the PNB board okay to infuse this significant capital into the Housing Finance? Reportedly, the board of PNB is planning to uplift the capital through the shares’ issue rights. Since the news of PNB’s investment broke out on the internet, people linked with Punjab National Bank and its customers have been curious to learn what the real matter is and how this investment will help them. There are various points that are yet to be cleared at this point in time. You are advised to follow this note and must take a look below to learn about PNB’s 500 crore investment in detail. Swipe down the page.
The PNB board agreed to approve the participation of the Punjab National Bank in the proposed rights shares’ issue, and the public bank sector board allowed the bank to raise capital up to 500 crores just to keep the shares of the bank in the mortgage lender above 26% but less than 30%. If PNB holds 26% of the shareholding then how did it help the bank? To get the explanation of this question you have to follow the further section.
According to the reports, if PNB holds above 26% of the shareholding then the bank will be able to regain its status in the PNB Housing Finance as a promoter. As of now, the Punjab National Bank is the owner of around 32.6% shares in the Punjab National Bank Housing sector lender. However, the Punjab National Bank is obligated to get the approval of the Reserve Bank of India before subscribing to the rights issues. Keep reading this post to learn more about PNB Housing sector right issues. Scroll down the page.
Last year the Reserve Bank of India halted the Punjab National Bank from investing in Housing Finance. RBI did not approve the request of PNB to invest in the Housing sector lender as the Central Bank in support of holding the bank’s capital significantly high from the regulatory norm. Punjab National Bank’s monetary adequacy ratio was 14.5% by the end of March month this year while it was 14.32% last year. Stay tuned to this page for more information and updates.
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