Public sector lender Punjab National Bank (PNB) on Monday said that its board is planning to consider capital infusion of up to Rs 18,000 crore in its meeting later this week.
The speculation on the infusion comes against the backdrop of the centre’s announcement on August 30 pertaining to the merger of 10 nationalised banks as part of which PNB will merge Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself.
“The board shall consider capital infusion up to ₹18,000 crore in its meeting scheduled on September 5, 2019,” said PNB in a regulatory filing.
On August 31, PNB was notified by the finance ministry that the government about its decision regarding PNB, OBC and UBI’s amalgamation.
“Accordingly, a meeting of the board of directors to consider the amalgamation will be convened by the bank shortly,” PNB had said.
Aimed at making the public sector banks (PSBs) of global size and scale, the mega-merger plan is being seen as the biggest consolidated exercise in the banking domain.
Other banks who are a part of this exercise include merger are Syndicate Bank, Canara Bank, Allahabad Bank, Indian Bank, Andhra Bank, Corporation Bank and Union Bank of India.
With this move, the number of government-owned banks in India will come down to 12.
In April 2017, State Bank of India had merged its five associate banks and Bharatiya Mahila Bank with itself. While that last fiscal witnessed the merger of Vijaya Bank and Dena Bank into Bank of Baroda.