The Indian government is ready to infuse Rs 38 billion into 3 state-run banks by March end 2010. This was said by a minister recently. It will be an help to their shares to extend gain in the market that has ended almost unchanged.
The Indian banks have been unable to raise fresh equity after the global crisis. But these banks have adhere to the RBI’s capital adequacy rules and at the same time meet the rising demand for loans required to prime the slowing economy.
The Home Minister Palaniappan Chidambaram on Wednesday said the union cabinet has approved a proposal to put the funds into UCO Bank, Central Bank of India and also to Vijaya Bank by subscribing to their shares.
Chidambaram also mentioned, “Today accessing the capital market is not a viable option. Capital is required. Therefore, we decided to infuse capital.”
UCO Bank will be getting Rs 12 billion, 4.5 billion in FY09 and the rest 7.5 billion in next fiscal year.
Central Bank will be getting Rs 7 billion in FY09 and the same in the next fiscal year. Vijaya Bank will be getting Rs 5 billion in FY09 and Rs 7 billion in the next fiscal year.
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, Metro News & Tamsquare
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