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    PNB board approves amalgamation with OBC, United Bank

    Synopsis

    The board meeting held on Thursday followed the finance ministry asking the three banks to consider the proposal of amalgamation, PNB said in a regulatory filing.

    PNBAgencies
    The government on Friday announced infusion of Rs 16,000 crore in PNB for a smooth and seamless amalgamation.
    New Delhi: The board of Punjab National Bank has given “in-principle” approval for its amalgamation with Oriental Bank of Commerce and United Bank of India.

    The state-owned lender's board also approved capital infusion of up to Rs 18,000 crore by the government for preferential allotment of equity shares of the bank at a price determined as per Sebi regulations. The board meeting on Thursday followed a finance ministry instruction asking the three banks to consider the proposal of amalgamation, PNB said in a regulatory filing. An extra general meeting has been called on October 22 for approval of this decision by the shareholders, PNB said in a letter to BSE.

    Finance minister Nirmala Sitharaman had on August 30 announced a plan to consolidate 10 state owned lenders into four, accompanied by reforms, to create fewer and stronger globalsized lenders.

    The lender emerging after the merger will be the secondbiggest public sector bank in the country valued at about Rs 18 lakh crore.


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    ( Originally published on Sep 05, 2019 )
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