Money & Banking

OBC gets Rs 1,739.99 cr fund infusion

| | Updated on: Mar 30, 2011

State-owned Oriental Bank of Commerce (OBC) on Wednesday said it has allotted 4.12 crore shares to the government of India on a preferential basis in return for a Rs 1,739.99 crore fund infusion.

As a result, the government of India’s holding has increased to 58 per cent from 51.09 per cent, OBC said in a statement.

Shareholders of the bank approved a Special Resolution at an Extraordinary General Meeting yesterday for the issue and allotment of 4,12,21,482 equity shares of Rs 10 each to the government at Rs 422.11 a share, it said.

Finance Minister Mr Pranab Mukherjee had announced a capital infusion of Rs 20,157 crore into public sector banks during the current fiscal to ensure that these entities were able to attain a minimum of 8 per cent tier-I capital by March 31, 2011.

The proposed capital infusion is to enhance the lending capacity of the state-owned banks to meet the credit needs of the economy in order to maintain and accelerate the economic growth momentum.

Finance Minister Mr Pranab Mukherjee in 2011-12 Budget presented last week had said, “I propose to provide a sum of Rs 6,000 crore for the year 2011-12 to enable Public Sector Banks to maintain a minimum tier-I Capital to Risk Weighted Asset Ratio (CRAR) at 8 per cent.”

Published on March 30, 2011

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