Punjab National Bank (PNB), a state-owned Indian bank, has announced its intention to infuse Rs 72.82 crore into its Bhutan-based subsidiary, Druk PNB Bank Ltd, via a rights issue. PNB’s board has approved participation in the proposed rights issue of DPNBL for the said amount, according to a regulatory filing by the bank. As of now, PNB holds 51% of the subsidiary.
DPNBL was established on December 31, 2008, with foreign direct investment (FDI) participation, as per the filing. The indicative time period for completion of the rights issue is by the end of August 2023, the filing added.
The proposed rights issue of DPNBL of Bhutan is at a premium of Rs 7 (face value of Rs 10), i.e., Rs 17 per share, as per the filing. Once the rights issue is completed, PNB’s shareholding in the subsidiary will remain unchanged at 51%. This move indicates PNB’s commitment to supporting its overseas subsidiary and expanding its presence in the Bhutan market.
Druk PNB was incorporated under the Companies Act of the Kingdom of Bhutan 2000 in the year 2008, and licensed to operate as commercial bank by the Royal Monetary Authority of Bhutan under the Financial Institutions Act of Bhutan 1992. Druk PNB is listed with the Royal Securities Exchange of Bhutan Limited (RSEBL).