State-run Bank of India (BoI) on Tuesday said the government has approved a capital infusion of Rs 1,150 crore in lieu of preferential allotment of shares.

"The government of India has conveyed their approval to infuse capital funds to the tune of Rs 1,150 crore in the bank by way of preferential allotment of equity shares in favour of government of India," BoI said in a statement.

Banking shares mainly public sector undertakings (PSUs) have rallied by up to 13% on the National Stock Exchange (NSE) in early morning trade after the Reserve Bank of India (RBI) has allowed banks to beef up its capital adequacy by including certain items such as property value, foreign exchange for calculation of its Tier-I capital.

State Bank of India (SBI), Bank of Baroda (BOB), Bank of India (BOI), Indian Bank, Union Bank of India, Canara Bank and Punjab National Bank are among few rallied more than 6% on the NSE.

In our Q3FY16 result review note, we mentioned that the total outstanding 5/25 cases for PNB amount to Rs 10,000 crore. The management clarified that the same is Rs 6,800 crore pertaining to 13 accounts, out of which cases amounting to Rs 30-40 billion have already been classified as NPA. The SDR cases undertaken by the bank amount to Rs 7,000 crore, also in 13 accounts. Out of this, Rs 758 crore has already been classified as NPA, Rs 5,600 crore worth cases have come from the standard restructured book, while the balance Rs 700 crore is from the standard book.

Close to a third of Punjab National Bank’s gross non-performing assets (NPAs) of Rs 34,338 crore have resulted from wilful defaults, the lender has said. Of this amount of Rs 10,869 crore, the top 10 wilful defaulters together owe the New Delhi-headquartered bank Rs 3,554 crore.

As at the end December last year, PNB had identified 904 companies as being wilful defaulters and filed cases against some of them. The number at the end of September 2015 was 764 companies and the value of unpaid loans then was Rs 9,204 crore.

As part of its efforts to raise capital, Punjab National Bank (PNB) is weighing the options of diluting stake in some of its subsidiaries and selling off real estate assets.

We have so many investments, we have to take a call at the appropriate time. The bank may consider sale of certain important core assets. We are trying to get their valuations first. We need to decide what to dispose, how much it will fetch, PNB Managing Director Usha Ananthasubramanian told PTI.

Punjab National Bank (PNB), the fourth largest state-owned bank by assets, announced December quarter earnings on Tuesday that highlighted the huge problem of troubled loans haunting public sector banks, sending an unambiguous message that despite the rosy GDP numbers, what lurks beneath is ugly.

Gross non-performing assets touched 8.5% of the loan book, jumping by more than half from September-end, as a result of a review of loans initiated by the Reserve Bank of India (RBI) as part of a cleaning-up exercise. Stressed assets, which include bad loans plus restructured assets, increased to 17.6%.

India's second largest state-run lender Punjab National Bank posted a sharp 93% decline in net profit in the third quarter of the fiscal on account of fresh slippages arising from the steel sector besides higher provisioning requirement as part of RBI norms. The net profit in the October to December quarter stood at Rs 51 crore versus Rs 775 crore in the corresponding period of the previous fiscal.

Lingering concerns over the passage of GST Bill in the ongoing Parliament’s winter session and factors such as interest rate hike worries by the US Federal Reserve next week, falling commodity prices, funds outflow by foreign institutional investors and bleak global cues dragged the key benchmark indices over 2 per cent down for the week ended December 11. This week Sensex and Nifty fell 593.68 points and 171.45 points to 25,044.43 and 7,610.45, respectively.

During the week, Cairn India (down 9.80 per cent), Punjab National Bank (down 8.60 per cent), Vedanta (down 8.50 per cent), Coal India (down 8.20 per cent) and YES Bank (down 7.60 per cent) slid the most in the Nifty pack.

PNB Housing Finance Ltd, promoted by Punjab National Bank, will raise $75 million from International Finance Corporation (IFC). The investment will be done by subscription to a secured fixed/floating rate non-covertible debenture (NCD) issued by the company.

The funds will be used to finance construction of green residential apartments/buildings that are certified by recognised green building certification standards, including EDGE (certification programme developed by IFC), IFC said.

Mumbai: PNB Housing Finance Ltd, the housing finance subsidiary of state-owned Punjab National Bank (PNB), has initiated discussions with investment banks for an initial public offering (IPO) that could see the company raise approximately Rs.2,500 crore ($385 million) from the primary market, according to two people aware of the development.

“The firm has been meeting up with banks over the last couple of months and has requested for proposals from investment banks,” said the first person mentioned above, requesting anonymity as he is not authorized to speak to the media.

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