OBC gets Rs 1,740 cr from centre

The government has infused Rs 1,739.99 crore into Oriental Bank of Commerce (OBC). This will increase the government’s shareholding in the Delhi-based bank from 51.09 per cent to 58 per cent.

In an extraordinary general meeting on March 29, OBC’s shareholders approved the preferential allotment of equity shares worth Rs 1,739.99 crore to the central government. The shareholders unanimously approved the special resolution for the issue and allotment of 4.12 crore equity shares of Rs 10 each at Rs.422.11 per share, the public sector lender said in a statement on Wednesday.

OBC’s scrip rose 2.07 per cent, or 7.95 points, to 392.50 on the Bombay Stock Exchange on Wednesday.

The government had announced capital infusion of Rs 20,157 crore into public sector banks in the current financial year to increase their capital base. The capital support was given to help banks attain a minimum of 8 per cent Tier-I capital by March 31, 2011.

Budget 2011-12 had proposed to provide a sum of Rs 6,000 crore in 2011-12 to enable public sector banks to maintain minimum Tier-I capital-to-risk weighted asset ratio at 8 per cent. OBC had reported 41.05 per cent rise in its net profit at Rs 408.25 crore for the quarter ending December 2010-11, compared with Rs 289.43 crore in the corresponding period of the last financial year.