Bank Recapitalisation: Government Infuses Rs 21,428 Crore Into 5 Public Sector BanksBank of Baroda (Gryffindor/Wiki Commons)

The government carried out another round of fund infusion into a number of public sector banks to the tune of Rs 21,428 crore, which includes Bank of Baroda (merged with Vijaya Bank and Dena Bank from 1 April 2019).

The infusion was carried out with the banks calling an extraordinary general meeting of their respective shareholders and approving the issuance of equity shares to Government on a preferential basis.

In this recapitalisation drive, Punjab National Bank received Rs 5,908 crore, Bank of Baroda received 5,042 crore, while Union Bank received 3,806 crore. Also, Indian Overseas Bank received 3,806 crore and Central Bank received 2,560 crore. This infusion is aimed at helping the banks develop a more robust lending book, while also boosting the investment activity in the economy.

With this round of fund infusion completed, the Government's shareholding in Central Bank of India has risen from 89.40 per cent to 91.20 percent. In case of Indian Overseas Bank, government holding has increased from 89.39 per cent to 92.52 per cent.

"This capital infusion will help the bank to shore up its capital adequacy requirements and enable the bank to build a robust loan book," R Subramaniakumar, MD & CEO, Indian Overseas Bank told PTI.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber