PNB board okays merger of PNB Gilts with itself

Here is the beginning of my post. And here is the rest of it.Punjab National Bank said the board has given go-ahead to PNB Gilts to work out scheme of merger with the bank. The Delhi-based bank currently holds about 74 per cent in PNB Gilts and the rest is with retail investors and institutional investors. PNB Chairman & Managing Director, Mr K C Chakrabarty, has said : "we are looking at merger as one of the options because it does not make sense to have a separate subsidiary which is not into any business other than gilts." A merger will allow us to avail the Rs 40-50 crore capital infused in PNB Gilts and put it to other use, he had said. Similarly, the bank is also reviewing the possibility of merging its housing finance arm PNB Housing Finance Ltd with itself.