Mar 20, 2017 01:30 PM IST | Source: Moneycontrol.com

Dena Bank shares jump 7% on capital infusion by government

Government official told CNBC-TV18 that the finance ministry has allocated around Rs 8,000 crore in last tranche of bank recapitalisation for current financial year.

Dena Bank shares jump 7% on capital infusion by government

Moneycontrol News

Dena Bank shares gained 7.4 percent intraday Monday after the government decided to infuse capital in the bank through preferential issue.

"The bank has received a communication from Government of India, on March 16, informing about capital allocation of Rs 600 crore as part of turnaround linked infusion plan," the public sector lender said in its filing.

The board approval for raising of capital of the bank through issue of equity shares to Government of India, LIC of India and GIC of India on preferential basis, is being obtained, it added.

Government official told CNBC-TV18 that the finance ministry has allocated around Rs 8,000 crore in last tranche of bank recapitalisation for current financial year.

Around 7-8 PSU banks including IDBI Bank will receive this recapitalisation amount in March, it said, adding the remaining allocation will be dependent on parameters like NPA reduction and costs.

At 13:03 hours IST, the stock was quoting at Rs 39, up Rs 1.95, or 5.26 percent amid high volumes on the BSE.

Posted by Sunil Shankar Matkar
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