Public sector lenders Bank of India (BOI) and Union Bank of India (UBI) have issued equity shares worth Rs2,455 crore and Rs1,079 crore respectively to the Government on preferential basis for capital infusion. “Consequent to the receipt of capital funds from the Government to the tune of Rs1,079.99 crore, the bank has on September 30, 2015 issued and allotted 5,16,62,281 at an issue price of Rs209.05 per equity share on preferential basis,” UBI said in a BSE filing on Saturday.
In a separate filing, Bank of India said it has allotted 12,70,04,655 equity shares to Government on September 30, 2015.”Consequently, shareholding of Government has increased from 64.43 per cent to 70.13 per cent and correspondingly, the non-Government shareholding has decreased from 35.57 per cent to 29.87 per cent,” it added. BOI will get a capital infusion of Rs2,455 crore by way of increased the Government shareholding. Earlier in August this year, the Government had decided to infuse Rs 20,088 crore in 13 public sector banks (PSBs), including SBI, Punjab National Bank, IDBI, Canara Bank, Corporation Bank and a few others.