Govt to infuse Rs 1,675 cr in Syndicate Bank, UCO Bank

State-run banks Syndicate Bank and UCO Bank are issuing shares to the government on a preferential basis to raise a total Rs 1,675 crore.
UCO Bank in a filing to the BSE today said that it will raise Rs 935 crore by issuing preferential shares to the government.
"The Board of Directors of the Bank at its meeting held on March 28, 2016, considered the proposal for issue of equity shares to Government of India on preferential basis against their proposal for capital infusion of Rs 935 crore", UCO Bank said in the filing.
Syndicate Bank in a filing said it will raise up to Rs 740 crore through preferential allotment. The decision to allot shares to government is to be taken at the meeting of the Board of Directors on March 31, it said.

Shares of UCO Bank closed 2.51 per cent lower at Rs 36.95 apiece on BSE. Syndicate Bank closed at Rs 63.65, down 1.77 per cent.
The capital raising is part of the government's Rs 25,000 crore capitalisation plan earmarked for the current fiscal.

Parliament has approved Rs 5,050 crore for meeting additional expenditure on recapitalisation of public sector banks earlier this month.
Among others, the likely contenders for the fresh round of infusion include Central Bank of India, Indian Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India.
The capital raising is expected to be done within this week, as the year 2015-16 comes to an end on March 31.