With the Union Government going ahead with its capital infusion plans, many public sector banks have scheduled their extraordinary general meetings (EGM) in the coming fortnight to seek the shareholders’ approval to shore up capital.
While some of them will be making preferential allotment of shares at a premium to the Government of India, others, apart from receiving capital infusion from government, will go for private placement of shares or qualified institutional placement (QIP). The Centre has earmarked Rs. 14,000 crore for capital infusion into banks in the current fiscal. While Punjab National Bank and Indian Overseas Bank have scheduled their EGMs on December 16 for preferential allotment of shares to Government, Corporation Bank has announced that it would also seek the shareholders’ nod for a private placement/QIP. Andhra Bank has convened its EGM on December 19 for both preferential issue and QIP/private placement. Dena Bank and Allahabad Bank will seek shareholders nod on December 24 for this purpose. . Canara Bank, for its part, has convened its EGM on December 30 for the preferential issue of shares to the Government.
