Punjab & Sind Bank seeks Rs 900 crore

NEW DELHI: Delhi-headquartered Punjab & Sind Bank has sought fresh capital infusion of Rs 900 crore from the government to push its business.

PK Anand, the bank's executive director and the officiating chief, told TOI that the public sector player wanted the funds through preference shares though the government was yet to revert to the proposal. Though the bank appeared comfortable with a capital adequacy ratio of nearly 13%, its Tier I capital adequacy was 8.35%, which is just marginally higher than the 8% comfort level.

"We need the capital to pursue our growth plans," Anand said. The government, which is fighting to stay within the budgeted fiscal deficit level of 4.6% of GDP, is however, going to find it tough to meet Punjab & Sind Bank's demand as the amount has not been budgeted for in the recpaitalisation plans for the current financial year.

In any case, the bank had been provided a significant amount before its initial public offer last year.