Govt infuses Rs 13,955 crore capital into 8 PSU banks

New Delhi: Eight public sector banks, including SBI, Punjab National Bank and Bank of Baroda, Wednesday said they have allotted equity shares on preferential basis to the government against capital infusion of Rs 13,955 crore.

Bank of India, Canara Bank, Dena Bank, Corporation Bank and Andhra Bank are among the lenders that received capital infusion from the government.

The lenders, in separate filings to the BSE, informed that they have alloted equity shares to government in lieu of capital infusion.

The latest capital infusion is part of government's programme to infuse a total Rs 70,000 crore equity into public lenders over four years to 2018-19 to shore up their capital base for meeting Basel norms.

In a filing to BSE, country's largest lender SBI said, "The Committee of Directors for Capital Raising in its meeting held on September 29, considered and accorded approval to allot 19,65,59,390 equity shares on preferential basis to Government for a consideration of Rs 5,392.99 crore."

The shares were issued at a price of Rs 274.37 each.

Bank of Baroda said it issued 9,26,63,692 equity shares at Rs 192.74 apiece amounting to Rs 1,785.99 crore.

Bank of India issued 12,70,04,655 shares (Rs 193.30 each) for Rs 2,455 crore and Punjab National Bank issued 10,90,40,543 equity shares (at Rs 158.84) for Rs 1,732 crore capital infusion.

Canara Bank, in an update about Extraordinary General Meeting held yesterday, said shareholders approved to issue and allot 2,77,94,083 shares (Rs 340.72 each) to government for a worth of Rs 947 crore.

Corporation Bank said its board today allotted over 15.66 crore shares to the government for a capital infusion of Rs 857 crore.

Dena Bank will get Rs 407 crore while Andhra Bank will receive Rs 378 crore capital, according to the filings by the banks.

The government has laid out a road map for Rs 70,000 crore capital infusion into PSU banks over four years.

Of this, Rs 25,000 crore each is marked for 2015-16 and 2016-17 and Rs 10,000 crore each in 2017-18 and 2018-19.

In August this year, government said it would infuse Rs 20,088 crore in 13 public sector banks in about a month's period. The rest of the amount is expected to be infused in the last quarter of 2015-16.

Other PSU banks to get capital infusion this fiscal include IDBI (Rs 2,229 crore), Indian Overseas Bank (Rs 2,009 crore), Union Bank of India (Rs 1,080 crore), Bank of Maharashtra (Rs 394 crore) and Allahabad Bank (Rs 283 crore).

The government has estimated a capital requirement of Rs 1.80 lakh crore for PSU banks over four years. Of this, banks will have to raise Rs 1.10 lakh crore from the market.