3 PSU banks to get Rs 1,000 cr capital infusion from govt

Three public sector lenders, including Oriental Bank of Commerce and Vijaya Bank, today received approval from the government for capital infusion of up to Rs 1,000 crore.

"Finance Ministry has conveyed its decision to infuse capital funds to the tune of Rs 300 crore in the bank by way of preferential allotment of equity in favour the Government of India," Oriental Bank of Commerce said in a statement.

Besides, United Bank of India will get Rs 480 crore while Vijaya Bank will get fund infusion of Rs 220 crore by way of preferential allotment of equity in favour of the government of India.

This is part of government's plan to infuse Rs 5,050 crore in public sector banks.

In the second and the last tranche, government has infused capital in eight banks. Banks include Bank of India, Central Bank of India, Allahabad Bank, UCO Bank and Syndicate Bank.

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 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 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.