Punjab & Sind Bank to raise up to Rs 5,500 crore by issuing shares

State-owned Punjab & Sind Bank on Saturday said its board has approved a proposal to raise up to Rs 5,500 crore by issuing shares on a preferential basis.

The board approval is in line with the government sanction to infuse an amount of Rs 5,500 crore in the bank towards contribution of the Centre in the preferential allotment of equity shares during FY2020-21.

The board has cleared agenda to "offer, issue, create and allot equity shares up to Rs 5,500 crore including share premium to the Government of India by way of preferential issue of equity shares", the bank said in a regulatory filing.

The fundraising will help the bank meet its regulatory and growth capital.