PNB’s rights issue to be final by December

The state-owned Punjab National Bank said that the Rs 2,500 crore rights offering of its subsidiary PNB Housing Finance will be completed by December at the latest. Following the rights issue, PNB shareholdings as a promoter of the company would fall from 32.57 percent to less than 30 percent. RBI has given approval for infusion of Rs 500 crore in PNB Housing Finance. Post rights issue, the holding of the bank would come down below 30 per cent but would be higher than 26 per cent so that bank retains promoter status, PNB Managing Director A K Goel said. PNB would not subscribe to the rights issue in proportion to its current stake in the company because the Reserve Bank of India (RBI) has limited the bank's investment in the rights issue to Rs 500 crore. As a result, the lender's share in the mortgage firm will fall below 30% from its existing level.