New Delhi: State-run Bank of India (BoI) on Tuesday said the government has approved a capital infusion of Rs 1,150 crore in lieu of preferential allotment of shares.
"The government of India has conveyed their approval to infuse capital funds to the tune of Rs 1,150 crore in the bank by way of preferential allotment of equity shares in favour of government of India," BoI said in a statement.
This is part of government's plans to infuse Rs 5,050 crore in the public sector banks.
In the first tranche, as many as 13 public sectors banks were given fund support of Rs 19,950 crore. Of this, SBI got the highest amount of Rs 5,393 crore.
Besides, the government infused Rs 2,229 crore in IDBI Bank, Indian Overseas Bank Rs 2,009 crore and Punjab National Bank Rs 1,732 crore.
Last year, the government announced a revamp plan 'Indradhanush' to infuse Rs 70,000 crore in state-owned banks over four years, while they will have to raise a further Rs 1.1 lakh crore from markets to meet their capital requirements in line with global risk norms Basel-III.
In line with the blueprint, PSU banks will get Rs 25,000 crore this fiscal and also in the next fiscal. Besides, Rs 10,000 crore each would be infused in 2017-18 and 2018-19.