Chennai: Keeping with its word to infuse around Rs 65,000 crore into Public Sector Banks (PSB), the government infused Rs 10,882 crore in four PSB, including UCO Bank and Syndicate Bank.
On Monday, in a regulatory filing UCO Bank said, it has received Rs 3,074 crore in the equity by way of preferential allotment. Besides, Bank of Maharashtra got Rs 4,498 crore, Syndicate Bank Rs 1,632 crore and Central Bank of India Rs 1,678 crore.
The government has already announced infusion of Rs 10,086 crore in Bank of India, Rs 5,500 crore in Oriental Bank of Commerce and Rs 2,159 in United Bank of India.
Recently, the government pumped in Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds. The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 
42,000 crore is remaining.
Earlier this month, Finance Minister Arun Jaitley said the government would put an additional Rs 41,000 crore in PSBs over and above what was announced earlier.
The recapitalisation would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework, Jaitley said.
On 20 December, the government sought Parliament’s approval for infusion of an additional Rs 41,000 crore.
| Stocks rise |
| It must be noted that the Nifty PSU Bank index was trading one per cent higher last Friday after media reports said that the government is likely to inject Rs 28,615 crore fund in seven public sector undertaking (PSU) banks.
Shares of Syndicate Bank and Union Bank of India, which gained three per cent each, were leading the indexs gain. Shares of Central Bank, Indian Bank, Oriental Bank of Commerce (OBC), Canara Bank, and Bank of Baroda also contributed to the gain rising two per cent each. Bank of India, SBI, and PNB also rose one per cent, each. |