Conversion of PNCPS approved by cabinet

New Delhi, Jan.9: The Union Cabinet on Thursday gave its approval for conversion of Perpetual Non-Cumulative Preference Shares (PNCPS) held by Government of India (GOI) in Indian Bank, UCO Bank and Vijaya Bank

Briefing the Media, Union Minister of Information and Broadcasting Manish Tewari said that the conversion amounted to Rs.400 crore, Rs.1,823 crore and Rs.1,200 crore respectively into Equity Shares of these banks in favour of GOI, and was subject to approval of shareholders and also Securities and Exchange Board of India (SEBI) and other authorities.

He further said that conversion of PNCPS subscribed by GOI in Indian Bank, UCO Bank and Vijaya Bank into equity shares in the first instance and subsequently in other Public Sector Banks where GOI has invested in PNCPS, PCPS and IDPIs, would enhance the Tier-1 capital of the PSBs thereby making available more funds at their disposal to meet the credit requirement of the productive sectors of economy.

He added that it would also provide impetus to the economy by including the under-banked rural and semi-urban areas.

The conversion is proposed to be done in the Financial Year 2013-14 subject to approval of shareholders and also the Securities and Exchange Board of India (SEBI) and other authorities. (ANI)