New Delhi, Feb. 23 -- Punjab & Sind Bank will allot preferential shares to the government next month in lieu of Rs.5,500 crore capital infusion into the bank. A general meeting of the shareholders of the bank is scheduled on 25 March, 2021 for preferential issue of equity shares to the government up to Rs.5,500 crore, the bank said in a regulatory filing.

The EGM, the bank said, will take place through video conferencing and other audio visual means for passing the resolution for issuing shares to the government.

In September, the government had approved a Rs.20,000 crore fund through Parliament, 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...