Govt infuses Rs 700 cr, Rs 400 cr in Dena and Allahabad Bank

The bank has allotted 11.85 crore shares of Rs 10 each to Government of India on preferential allotment basis at a price of Rs 59.03 per share

Government today infused Rs 700 crore and Rs 400 crore in Dena Bank and Allahabad Bank respectively through preferential share allotment route.

 

The bank has alloted 11.85 crore shares of Rs 10 each to Government of India on preferential allotment basis at a price of Rs 59.03 per share, Dena Bank said in a statement.

 

Accordingly, it said, the government has infused a capital of Rs 699.99 crore towards issuance and allotment of equity shares on preferential basis.

 

Post capital infusion, the paid-up capital share capital of the bank has increased from Rs 350.05 crore to Rs 468.64 crore and government's holding in the bank has increased from 55.24% to 66.57%, it said.

 

Shareholders of Dena Bank have approved raising up to Rs 800 crore by issuing shares by way of Qualified Institutional Placement (QIP) in one or more tranches.

 

Allahabad Bank in a filing to the BSE said it has allotted 4.45 shares of face value of Rs 10 each for cash at an issue price of Rs 89.72 per equity share on preferential basis to government of India.

 

The government has infused Rs 400 crore in the bank. Subsequently, the government holding in the bank increased to 58.90% from 55.24%.

 

The capital infusion by the government has been done with the twin objective of adequately meeting the credit requirement of the productive sectors as well as to maintain regulatory capital adequacy ratios in public sector banks (PSBs).

 

Infusion of capital by government in PSBs is in addition to their internally generated capital to enable the banks to maintain a comfortable level of Tier-I capital.

 

An amount of Rs 12,517 crore was infused in 13 PSBs during 2012-13.