Punjab and Sind Bank (BSE:533295) announced a private placement of common shares for gross proceeds of INR 10,000,000,000 on January 1, 2013. The round includes participation from returning investor, India (Republic of). The transaction was approved by the board of directors. The shares will be issued on preferential basis.

On February 11, 2013, the company announced that it will issue the shares at INR 70.66 per share for gross proceeds of INR 1,400,000,000. Upon completion of the transaction, India (Republic of) shall own 79.86% stake in the company. The transaction is subject to shareholder approval at the meeting to be held on March 11, 2013.