Latest News | Punjab & Sind Bank to Seek Shareholders' Nod to Set off Accumulated Loss of Rs 3,577 Cr from Share Premium A/c

New Delhi, Jun 28 (PTI) State-owned Punjab & Sind Bank on Monday said it will seek shareholders' approval next month to set off accumulated losses of over Rs 3,577 crore from its share premium account.

The 11th annual general meeting (AGM) of the shareholders will be held through audio-visual means on July 20, 2021.

The bank seeks to pass the special resolution of setting off the accumulated loss of Rs 3,577.55 crore as of March 31, 2021 by utilising the balance standing to the credit of the share premium account as on the date to set off and take the same into account during current financial year 2021-22, the bank said in a regulatory filing.

Share premium account balance is a reserve that can only be used for defined purposes. It reflects the difference between the face value and subscription price of shares.

The New Delhi-headquartered lender has not proposed any dividend for 2020-21.

The bank has the accumulated loss against securities premium amount of Rs 4,835.11 crore in its balance sheet. If approved and finalised, the bank's accumulated losses will stand reduced, said the lender.

"The proposed set off will present the true and fair view of the financial position and will not affect any ratios such as book value per share, return on equity, earning per share etc. The bank is of the view that this is the most practical and economically efficient option available," P&SB said.

With the representation of the true financial position, shareholders will be benefitted through dividends, it said, adding their holding will yield better value.

The proposal will also place the bank in a better position to achieve its turnaround plan in a time-bound manner, the lender added.

The bank had reported a net loss of Rs 2,733 crore in FY21.

P&SB stock closed 0.93 per cent up at Rs 21.60 apiece on BSE.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)