Govt to infuse Rs 947 crore in Canara Bank

Public lender Canara Bank today said the government will infuse an equity capital of Rs 947 crore in the bank.
It said the board of the bank at a meeting held today approved the proposal of issuing equity shares on preferential basis to the government in lieu of the capital infusion.
"Based on the letter received from the government on infusion of capital funds, the board of the bank, at its meeting held on August 31, 2015, has considered and approved the proposal regarding raising of capital amounting to Rs 947 crore by way of preferential allotment of equity shares in favour of the government," the bank said in a filing to BSE.

Last week, the country's largest lender SBI also spoke of issuance of equity shares on a preferential basis to the government for a capital infusion of Rs 5,393 crore.
Earlier this month, the government decided to infuse a total of Rs 20,088 crore in 13 public sector banks, including SBI, PNB, IDBI, Bank of Baroda, Canara Bank, Indian Overseas Bank and Union Bank of India.
Canara Bank shares traded at Rs 286.80 on BSE, up 2.25 per cent.