UBI to raise Rs 480 crore from govt via preferential allotment

New Delhi: State-owned United Bank of India (UBI) today said the government has approved capital infusion of Rs 480 crore in lieu of preferential allotment of shares.

"The government has decided to infuse capital funds to the tune of Rs 480 crore in the bank by way of preferential allotment of equity in favour of the Government of India," UBI said in a BSE filing.

This is part of the government's plan to infuse Rs 5,050 crore in 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 has infused Rs 2,229 crore in IDBI Bank, Rs 2,009 crore in Indian Overseas Bank and Rs 1,732 crore in Punjab National Bank.

Last year, the government had 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 the 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.