NEW DELHI: As many as three public sector lenders including Bank of India and Central Bank of India on Tuesday received the approval from the government for capital infusion of up to Rs 2,375 crore.
“The Government of India has conveyed their approval to infuse capital funds to the tune of Rs 1,150 crore in the banks by way of preferential allotment of equity shares in favour of the Government of India,” Bank of India (BoI) said in a statement.
This is a part of the government’s plans to infuse Rs 5,050 crore in the public sector banks.
Besides, Allahabad Bank will get Rs 690 crore while another public sector lender Central Bank of India will get fund infusion of Rs 535 crore by way of preferential allotment of equity in favour of the Government of India.
On Monday, UCO Bank had said it will raise Rs 935 crore by issuing preferential shares to the government while Syndicate Bank will raise up to Rs 740 crore through preferential allotment following board approval on March 31.
Finance Minister Arun Jaitley along with MoS Finance Jayant Sinha addressing a press conference in New Delhi
Last year, the government announced a revamp plan ‘Indradhanush’ to infuse Rs 70,000 crore in state-owned banks over four years, while they will have to raise a further Rs 1.1 lakh crore from markets to meet their capital requirements in line with global risk norms Basel-III.
In line with the blueprint, public sector unit (PSU) banks will get Rs 25,000 crore this fiscal and also in the next fiscal. Besides, Rs 10,000 crore each would be infused in 2017-18 and 2018-19.
Bank of India (BoI) in a separate statement said the bank has approved raising of authorised capital to Rs 6,000 crore.
Besides, the bank in the Extra Ordinary General Meeting approved raising of Rs 10,000 crore by way of Qualified Institutional Placement (QIP), rights issues, private placement or such other issue as may be permitted by law.