Govt infuses Rs 14,500 crore in 4 public sector banks
BusinessToday.In March 31, 2021
The government has infused a total capital of Rs 14,500 crore in four public sector banks (PSBs).
In separate filings to stock exchanges, Indian Overseas Bank, Bank of India, Central Bank of India and UCO Bank said that the government has infused capital in them.
"We wish to inform that the bank has received a capital infusion of Rs 4,100 crore from Government of India towards contribution of Central Government in the preferential allotment of equity shares of the bank during the financial year 2020-21, as government's investment," Indian Overseas Bank said in the filing.
While Bank of India said the government infused capital of Rs 3,000 crore, the Central Bank of India said it received Rs 4,800 crore from the government.
UCO Bank, in its filing, said the bank received capital of Rs 2,600 crore on March 31, 2021.
Last week, Punjab & Sind Bank had said that the government infused Rs 5,500 crore in lieu of allotment of 335.16 crore equity shares of the bank on a preferential basis.
The government had made a provision of Rs 20,000 crore for recapitalisation of public sector banks (PSBs) in the current financial year. With fund infusion in the four PSBs, the government has achieved its target.
In her Budget speech, Finance Minister Nirmala Sitharaman had said the government will infuse Rs 20,000 crore in PSBs in 2021-22 also to meet the regulatory norms.