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 executivedirector and the officiating chief, told TOI that the public sector playerwanted the funds through preference shares though the government was yet torevert to the proposal. Though the bank appeared comfortable with a capitaladequacy ratio of nearly 13%, its Tier I capital adequacy was 8.35%, which isjust marginally higher than the 8% comfort level. "We need thecapital to pursue our growth plans," Anand said. The government, which isfighting to stay within the budgeted fiscal deficit level of 4.6% of GDP, ishowever, going to find it tough to meet Punjab & Sind Bank's demand as theamount has not been budgeted for in the recpaitalisation plans for the currentfinancial year. In any case, the bank had been provided asignificant amount before its initial public offer last year.