SBI, Bank of Baroda allot shares to govt for capital infusion

Public lenders SBI and Bank of Baroda said on Wednesday they have approved issuance of shares on a preferential basis to the government in lieu of capital infusion of Rs 5,393 crore and Rs 1,786 crore, respectively.

SBI in a BSE filing said the Committee of Directors for Capital Raising considered and accorded approval to allot 19,65,59,390 shares on a preferential basis to the government at an issue price of Rs 274.37 a share for Rs 5,392.99 crore.

"The EGM approved by a Special Resolution the proposal to create, offer, issue and allot up to 9,26,63,692 shares to the government... at an issue price of Rs 192.74 per share amounting to Rs 1,785.99 on a preferential basis," Bank of Baroda said in a filing to BSE.

Earlier in August this year, the government had decided to infuse Rs 20,088 crore in 13 PSU banks, including Punjab National Bank, Bank of India, IDBI, Union Bank of India, Canara Bank, Corporation Bank and a few others.

The government has laid out a roadmap of Rs 70,000 crore for capital infusion in PSU banks over four years.

Of this, Rs 25,000 crore each is marked for 2015-16 and 2016-17 and Rs 10,000 crore each in 2017-18 and 2018-19.

The government has estimated a capital requirement of Rs 1.80 lakh crore for PSU banks over four years. Of this, banks will have to raise Rs 1.10 lakh crore from the market.