Share price of Punjab & Sind Bank hit nearly 5 per cent upper circuit on Wednesday after the lender announced that it will shares worth Rs 5,500 crore to the government in lieu of capital infusion.
During the afternoon hours the stock was trading at 4.98 per cent to hit the upper circuit limit at Rs 17.48 a piece on the BSE.
The scrip hit its upper trading limit on the NSE as well, with a gain of 4.80 per cent at Rs 17.45.
The bank in a regulatory filing on Tuesday said that an extraordinary general meeting (EGM) of the shareholders of the bank is scheduled on March 25, 2021 for preferential issue of equity shares to the government up to Rs 5,500 crore.
The general meeting will take place via video conferencing and other audio visual means for passing the resolution for issuing shares to the government.
In September last year, the government had approved a Rs 20,000 crore fund as part of the Supplementary Demands for Grants for 2020-21, for capital infusion into public sector banks (PSBs). Of this, Rs 5,500 crore was approved to be infused into Punjab & Sind Bank.