Govt To Infuse Rs 4,360 Crore Into Indian Overseas Bank

On Friday, Indian Overseas Bank said that the government will be infusing Rs 4,360 into the public-sector lender for the current financial year to meet the regulatory requirement.

"We wish to inform that the Bank has received vide letter doted 26.12.2019 a sanction from Government of lndia for release of Rs. 4360 crore towards contribution of the Central Government in the preferential allotment of equity shares (Special Securities/Bonds) of the Bank during the financial year 2019-20 as Government's investment," IOB said in its regulatory filing.

The finance ministry had earlier announced Rs 3,800 crore in favour of the state-owned lender for capital infusion. The budget has now been increased to Rs 4,360 crore.

IOB had reported the widening of net loss to Rs 2,253.64 crore for the quarter ended 30 September 2019.

The government has also approved the capital infusion of Rs 2,142 crore in UCO Bank in line with August's announcement.

Both the lenders are under the Prompt Corrective Action (PCA) framework of the Reserve Bank.