Govt buys 5.83% stake in PNB worth Rs 4,500 cr

Punjab National Bank, hit by a $2 billion scam, said the government of India has purchased around 63.82 cr shares in the bank.

At the current market price of Rs 71 each, the shares are worth Rs 4,530 cr.

With this, the government’s stake in the bank has risen to 71.92% from 66.09%.

The transaction was done via a preferential issue of fresh shares to the government by the bank Nov 1, PNB said.

Due to the transaction, the total shares outstanding in the bank has increased to 371.18 cr from 307.36 cr.

The company has been hit by India’s biggest ever fraud in which two junior officers at a single branch created liabilities of $1.77 billion by extending fraudulent guarantees to billionaire jeweller Nirav Modi.

Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act, with its office in Anarkali Bazaar, Lahore, in present-day Pakistan.

Its founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia, Lala Harkishen Lal and Lala Dholan Dass.

Lala Lajpat Rai was actively associated with the management of the Bank in its early years.

ALLAHABAD BANK

Separately, Allahabad Bank also that it “received a communication” from the government of India “regarding fresh capital infusion of Rs 3,054 cr” by way of preferential allotment during the current financial year.

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