The board of Punjab National Bank (PNB) has approved an investment of upto Rs 500 crore by participating in the rights issue of PNB Housing Finance.
The public sector bank's board has approved the bank's participation in the proposed rights issue of PNB Housing Finance (PNBHFL) for an amount upto Rs 500 crore, in order to retain bank's shareholding at 30% or below but above 26%, and to retain its status as promoter.
Separately, PNB Housing Finance board will meet on 14 June 2022 to consider and approve issuance of non-convertible debentures aggregating up to Rs 2,000 crore on private placement basis.
PNB Housing Finance is a deposit-accepting housing finance company, with second largest deposits outstanding within housing finance companies. As on 31 March 2022, Punjab National Bank held 32.57% in PNB Housing Finance.
Punjab National Bank is a public sector bank. As on 31 March 2022, the bank had 10,098 number of branches, 13,350 number ATMs and 15,719 business correspondents. The Government of India held 73.15% stake in the bank as on 31 March 2021.
Shares Punjab National Bank rose 0.64% to Rs 31.40 , while scrips of PNB Housing Finance rallied 5.23% to Rs 347.20 on the BSE.
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