The Board of Punjab National Bank has approved the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank, the company informed stock exchanges in a regulatory filing on Thursday.

It has also approved the government’s capital infusion of ₹18,000 crore, pending shareholder approval.

“In continuation to our intimation dated August 31, 2019, the exchange is hereby informed that the board of directors of the bank in its meeting held on September 5, 2019, has considered and decided to give its ‘in-principle approval’ for amalgamation of the Oriental Bank of Commerce and United Bank of India into Punjab National Bank and commence the amalgamation process for the same, subject to all applicable approvals,” the filing said.

The bank’s board met on Thursday following a letter from the government on August 30 advising the board to consider the amalgamation of the three banks.

Nod for capital infusion

The bank’s board has also approved a capital infusion of ₹18,000 crore by the Government of India, the filing added.

“Further, in the meeting today the Board has also approved the capital infusion of up to ₹18,000 crore by Government of India for preferential allotment of equity shares of Bank at a price determined in terms of SEBI (ICDR) Regulations and holding of Extra General Meeting (EGM) on Tuesday, October 22… for obtaining approval of shareholders,” the filing added.