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Oriental Bank of Commerce (OBC) on Wednesday allotted 4.12 crore shares to the Central Government, taking the latter's stake in the bank to 58 per cent.
The equity shares were allotted on a preferential basis at Rs 422.11 a share.
The allotment of these shares would lead to capital infusion of Rs 1,739.99 crore into the bank.
OBC's shareholders had on Tuesday given their nod for the preferential allotment of equity shares to the Government. The approval came through a special resolution passed at an extraordinary general meeting held on the same day.
Prior to the allotment, the Centre's stake in OBC was 51.09 per cent. The earlier stake holding level was close to the minimum 51 per cent stake that the Centre had promised to hold at all times in public sector banks.
The Finance Minister, Mr Pranab Mukherjee, had assured the Lok Sabha that the Government would ensure that its stake in public sector banks does not come below 51 per cent.
OBC had earlier requested the Government to pump in capital of at least Rs 1,000 crore.
The Government has been infusing capital in a slew of PSBs as part of its efforts to take its holding to 58 per cent in those banks where its stake was above 51 per cent but below 58 per cent. On Wednesday, OBC shares closed at the NSE at Rs 393.15 after gaining 2.13 per cent.
krsrivats@thehindu.co.in
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