Central Government To Infuse Rs. 10,086 Crore In Bank Of India

New Delhi: The Government of India has decided to infuse Rs 10,086 crore in the state-owned Bank of India as part of Rs 28,615 crore capital infusion to be done in about half a dozen public sector banks. According to the bank, the Finance Ministry had informed it about the capital infusion on Wednesday.

The fund infusion would be done through preferential allotment of shares. The board of directors would be considering by way of circular resolution on or after January 2, 2019, the proposal for raising capital by this infusion and further issue of equity shares at an appropriate time and other incidental matters.

According to sources, the government has decided to pump Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds soon. Out of these seven PSBs, United Bank of India also announced about the capital infusion communication from the finance ministry.

The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining.

Earlier this month, Finance Minister Arun Jaitley said the government would infuse an additional Rs 41,000 crore in PSBs over and above what was announced earlier.

According to Jaitley, the recapitalisation would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework.

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