Signals, Powered By EquityPandit
The government, as part of their Rs 28,615 crores capital infusion plan for seven public sector banks, has pumped Rs 10,882 crores in four public sector banks, namely UCO Bank, Syndicate Bank, Bank of Maharashtra and Central Bank of India.
UCO Bank in its regulatory filing said that the bank received Rs 3,074 crore in the equity by way of preferential allotment on Monday. Besides UCO bank, Central Bank of India received Rs 1,678 crores, Bank of Maharashtra secured Rs 4,498 crores, whereas Syndicate Bank got Rs 1,632 crores.
The government had previously announced capital infusion of Rs 5,500 crores in Oriental Bank of Commerce, Rs 10,086 crore in Bank of India, and Rs 2,159 in United Bank of India. The capital infusion in these seven public sector banks (PSBs) took place through recapitalisation bonds.
Out of government’s proposed capital infusion of Rs 65,000 crores in PSBs in 2018-19, Rs 23,000 crores has already been spent with Rs 42,000 crores in remains. Finance Minister Arun Jaitley has announced that the remaining Rs 42,000 crores will be infused in PSBs by the government over and above what was announced earlier.
In the previous month, on 20 December, the government sought Parliament’s approval for infusion of an additional Rs 41,000 crore. According to the finance minister, 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.
