Over dozen PSBs to get Rs 46K cr capital infusion this month

New Delhi: Over a dozen public sector banks (PSBs) will get Rs 46,101 crore as part of capital infusion in the current fiscal ending this month to allot shares to the government in lieu of equity capital.

These banks, including SBI, PNB, Bank of Baroda, Central Bank, Union Bank and OBC, have called shareholders’ meetings this month to pass the resolution to allot preferential shares to government so as to receive the capital.

Country’s largest lender State Bank of India (SBI) will get the largest sum of Rs 8,800 crore as government’s capital infusion.

A general meeting of SBI shareholders will be held on March 15 to pass a special resolution to create, offer, issue and equity shares, to be determined by board, aggregating to Rs 8,800 crore on preferential basis to the government, the bank said in a regulatory filing.

SBI said the preferential issue of shares to the government will enable the bank to meet its common equity tier -I capital requirement under Basel-III.

The second-largest bank PNB, which is embroiled in Rs 12,646 crore fraudulent transactions, allegedly by diamond jewellers Nirav Modi and Mehul Choksi, will get Rs 5,473 crore as capital infusion.

An extraordinary general meeting of shareholders will be convened on March 16 to create, offer and allot 33,49,85,922 equity shares amounting to Rs 5,473 crore to government on preferential basis, PNB said in an exchange filing.

Shareholders approval is therefore sought for issue of equity shares up to an amount of Rs 5,473 crore through preferential issue of equity shares in favour of Government,” PNB said.

Bank of Baroda will get Rs 5,375 crore as government equity capital; Central Bank Rs 4,835 crore; Union Bank of India Rs 4,524 crore; Oriental Bank of Commerce Rs 3,571 crore; Dena Bank Rs 3,045 crore; Syndicate Bank Rs 2,839 crore and Corporation Bank Rs 2,187 crore.