Bank of India to get Rs 1,150 crore capital infusion from govt

State-run Bank of India (BoI) on Tuesday said the government has approved a capital infusion of Rs 1,150 crore in lieu of preferential allotment of shares.

"The government of India has conveyed their approval to infuse capital funds to the tune of Rs 1,150 crore in the bank by way of preferential allotment of equity shares in favour of government of India," BoI said in a statement.

This is part of government's plans to infuse Rs 5,050 crore in the public sector banks (PSBs).

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In the first tranche, as many as 13 PSBs were given fund support of Rs 19,950 crore. Of this, State Bank of India 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 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, PSBs 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.