PNB board approves investing Rs 500 cr in PNB Housing's rights issue

PNB Housing Finance is looking to raise Rs 2,000 crore by issuing NCDs on a private placement basis

The board of Punjab National Bank (PNB) has approved an investment of Rs 500 crore by participating in the rights issue of PNB Housing Finance. 

The investment by state-owned lender in its housing finance arm will help PNB in maintaining its shareholding at 30 per cent or below and retain its status as a promoter, the bank said in an exchange filing. 

PNB Housing Finance is looking to raise Rs 2,000 crore by issuing non convertible debentures (NCD) on a private placement basis. The board of the mortgage lender will consider and approve the proposal of issuance of NCDs on June 14.