The 11th Annual General Meeting (AGM) of shareholders will be held via audiovisual media on July 20, 2021.
The bank seeks to pass the special resolution to offset the cumulative loss of Rs 3,577.55 crore as of March 31, 2021 using the balance to the credit of the issue premium account on the clearing date and taking into account the same thing. during the current fiscal year 2021-2022, the bank said in a regulatory file.
The balance of the share premium account is a reserve which can only be used for defined purposes. It reflects the difference between the nominal value and the subscription price of the shares.
The New Delhi-based lender has not proposed any dividends for 2020-2021.
The bank has the accumulated loss against the stock premium amount of Rs 4,835.11 crore on its balance sheet. If approved and finalized, the bank’s accumulated losses will be reduced, the lender said.
“The proposed compensation will present a true picture of the financial position and will not affect ratios such as book value per share, return on equity, earnings per share, etc. The bank believes that it is the most practical and economically efficient option available, ”said P&SB.
With the representation of the true financial situation, shareholders will benefit from dividends, he said, adding that their participation will produce better value.
The proposal will also put the bank in a better position to achieve its recovery plan within a limited time frame, the lender added.
The bank had reported a net loss of Rs 2,733 crore in FY21.
P&SB stock closed up 0.93% at Rs.21.60 a piece on BSE.