IDBI Bank to seek shareholders' nod for Rs 3,119-cr infusion

State-owned IDBI Bank will seek the approval of its shareholders for Rs 3,119.04-crore capital infusion by the government in its annual general meeting, to be held tomorrow.

The capital infused through preferential allotment of shares to the Government of India would augment capital adequacy, IDBI Bank informed the Bombay Stock Exchange.

The government currently holds 52.6 per cent stake in the bank. Post-capital infusion, the stake of the Central government would go up to 65.15 per cent.

Under the scheme, the government would buy 25.95 crore equity shares at Rs 120.19 apiece as part of its planned capital support to banks.

Finance Minister Pranab Mukherjee had, in the last budget, announced that the government plans capital support of Rs 15,000 crore to public sector banks in the current fiscal to ensure that they are able to attain a minimum 8 per cent Tier-I capital by March 31, 2011.

Following this, the Cabinet approved the capital infusion plan, which would help public sector banks increase their lending capacity by Rs 1.85 lakh crore.

Three other banks -- namely Union Bank, Bank of Maharashtra and UCO Bank -- would also get capital under the capital infusion scheme.