Bank of India, Central Bank of India and Allahabad Bank will together receive Rs 2375 crore as capital infusion by the government. Of this Bank of India alone will get Rs 1150 crore. Allahabad Bank will receive Rs 690 crore and Central Bank of India Rs 535 crore. The banks will allot preferential shares to the government. This is part of the government’s plans to infuse Rs 5,050 crore in the public sector banks. Meanwhile, UCO Bank said it will raise Rs 935 crore by issuing preferential shares to the government while Syndicate Bank will be raise up to Rs 740 crore through preferential allotment following board approval. The government as part of its Indradhanush project, plans to infuse Rs 70,000 crore in the public sector banks over four years. The banks in turn will have to raise another Rs 1.1 lakh crore from markets to meet their capital requirements in line with the risk norms Basel-III. Meanwhile, Bank of India said the bank it has the approval of its extraordinary general meeting to raise the authorized capital to Rs 6000 crore. The bank is also proposing to raise Rs 10,000 crore by way of Qualified Institutional Placement, rights issues, private placement or such other issue as may be permitted by law.
