Govt's stake in IOB to increase by 7.49% after Rs 46.94-bn capital infusion

The govt's stake will to 89.90% from 82.41% currently

The government's stake in the Indian Overseas Bank (IOB) will increase by 7.49 per cent after it infuses Rs 46.94 billion as part of its recapitalisation programme.

In January, the government said it will recapitalise public sector banks, including Rs 800 billion through recapitalisation bonds and Rs 81.39 billion as budgetary support for 2018.

Out of Rs 46.94 billion, Rs 41.32 billion will be infused through recapitalisation bonds.

The Bank has said that post the infusion, the government's stake will increase by 7.49 per cent to 89.90 from 82.41 per cent currently.

IOB said that, with a view to comply with BASEL III requirements