New Delhi: The government Monday infused ₹ 10,882 crore in four public sector banks, including UCO Bank and Syndicate Bank, as part of ₹ 28,615 crore capital infusion to be done in about half a dozen public sector lenders. The bank has received ₹ 3,074 crore in the equity by way of preferential allotment on Monday, UCO Bank said in a regulatory filing.
Besides, Bank of Maharashtra got ₹ 4,498 crore, Syndicate Bank ₹ 1,632 crore and Central Bank of India ₹ 1,678 crore.
The government has already announced infusion of ₹ 10,086 crore in Bank of India, ₹ 5,500 crore in Oriental Bank of Commerce and ₹ 2,159 in United Bank of India. The government pumped in ₹ 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.
The government had earlier announced an infusion of ₹ 65,000 crore in PSBs in 2018-19, of which ₹ 23,000 crore has already been disbursed, while ₹ 42,000 crore is remaining. Earlier this month, Finance Minister Arun Jaitley said the government would put an additional ₹ 41,000 crore in PSBs over and above what was announced earlier.
On December 20, the government sought Parliament’s approval for infusion of an additional ₹ 41,000 crore. The recapitalisation, the finance minister said, would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework.
Eleven out of the total 21 PSBs are under the RBI’s PCA framework, which imposes lending restrictions on weak banks. These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.