PNB gets RBI approval to invest Rs 500 crore in PNB Housing Finance Rights issue

July 30, 2022
Current Context: Punjab National bank (PNB) got RBI approval to invest Rs 500 crore in the proposed Rs 2,500 crore rights issue of PNB Housing Finance Ltd (PNBHFL).
PNB gets RBI approval to invest Rs 500 crore in PNB Housing Finance Rights issue
  • PNB which is the second largest public sector bank currently has a 32 percent stake in PNBHFL. As per the Managing Director and CEO of PNB, Atul Kumar Goel, they will not sell existing stakes in PNBHFL.
  • With the investment of Rs 500 crore, banks' shareholding in PNBHFL will come down below 30 percent, which is the regulatory requirement. But the shareholding will remain above 26 percent, so PNB can continue to be the promoter bank.
  • The rights issue process will be completed by the end of December or by the next quarter (January to March 2023).
  • In March this year, the PNBHFL board approved the capital raising of Rs 2,500 crore through a rights issue.
  • The detailed terms of the rights issue including the issue price, rights entitlement ratio, record date, and timing are yet to be finalized.
  • Static Knowledge:
    • PNB MD and CEO - Atul Kumar Goel
    • PNB headquarters - New Delhi
    • PNB was formed - May 19, 1894
    • PNBHFL MD and CEO - Hardayal Prasad

Question: 

Q.1 Punjab National Bank gets RBI approval to invest Rs_______ in PNBHFL (PNB Housing Finance Ltd (PNBHFL).
a. Rs. 600 crore
b. Rs. 650 crore
c. Rs. 500 crore 
d. Rs. 550 crore

Free Exam Resources

Useful material to support your preparation, revision and exam planning.

Continue on BankExamsToday

Revise notes, practice questions and resume anytime.

Meet your mentor

From the Founder

Ramandeep Singh, founder of BankExamsToday

Ramandeep Singh

Banking Educator · Former Banker

Former banker and educator helping aspirants prepare for banking promotion and specialist officer exams with focused, practical guidance.

14+
Years' experience
5,000+
Selections
Ex-BoB
Banking experience