Punjab National Bank (PNB) will invest Rs 600 crore in PNB Housing Finance through preferential issue or rights issue among other options.
In a regulatory filing on Friday, the bank said that it will infuse the amount as and when its associate, PNB Housing Finance plans to raise capital.
“The Bank has decided to infuse capital of an amount upto Rs 600 crore in PNB Housing Finance Ltd. (PNBHFL), an Associate of the Bank, through Preferential Issue/Rights Issue etc. subject to Regulatory Approvals, as and when PNBHFL decides to raise capital,” it said.
As of June 30, the state-run PNB held 32.65 per cent stake in the housing finance company.
At 1.09 p.m., shares of PNB Housing Finance on the BSE were trading at Rs 207, lower by Rs 2.80 or 1.33 per cent from its previous close.