PSBs Receive Capital Infusion from Government

Several public sector lenders on Saturday said they have received capital infusion from the central government.

Several public sector lenders on Saturday said they have received capital infusion from the central government. State-owned Bank of India said it has received a capital infusion worth Rs 2,257 crore.

“The bank has on December 29 received an infusion of Rs 2,257 crore from Government of India in form of common equity tier-1 capital, which is being kept as share application money and would be alloted after due procedure/conditions for allotment,” the bank said in a regulatory filing to the BSE. On October 24, the government had approved a recapitalisation plan for strengthening NPA-hit state-run banks to a tune of Rs 2.11 lakh crore.

“The infusion is in terms of the Ministry of Finance, Department of Financial Services, Government of India,” the BSE filing added. Another PSB Dena Bank said that it has received an infusion of Rs 243 crore on last Friday towards contribution of the central government in the preferential allotment of equity shares.

“The same has been kept as share application money and would be issued after necessary approvaIs or permissions,” the PSB said in a BSE filing. “Board approval for the same is already in place. This is within the approval of the board obtained on 9th May,2017 for raising CET1 capital up to an amount of Rs 1,800 crore in one or more tranche.”

In addition, Central Bank of India informed that a meeting of its Capital Raising Committee of the Board of Directors will be held on Wednesday, January 3, 2018 “to consider and approve raising of additional equity capital up to Rs 323 crore.”

The PSB said that it might issue and allot equity shares of the face value of Rs 10 each to the “President of India (Government of India) on preferential basis subject to approval of Reserve Bank of India, shareholders and other statutory authorities.”

Source: FE

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