Syndicate Bank gets Rs 728-cr capital infusion from govt

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Public sector Syndicate Bank said it has received capital infusion of Rs 728 crore from the government in lieu of preferential allotment of shares.

The bank said that the finance ministry had conveyed to the bank on October 17 of getting government sanction for release of Rs 728 crore towards contribution of the preferential allotment of equity shares during 2018-19 under plan as government's investment.

"The said fund was received by the bank on October 22 and has been kept in Syndicate Bank Share Application Money Account," it said in a regulatory filing.

The bank will be taking necessary approvals for allotment of requisite equity shares to the government in due course of time, Syndicate Bank added.

Central Bank of India will get Rs 2,354 crore in return to preferential allotment of shares to the government. The bank last week said that it will take up for approval the allotment of more than 35.4 crore equity shares to government to infusion capital at its extra-ordinary general meeting to be held on November 13.

As part of PSBs' recapitalisation, the government in October 2017 had announced a massive Rs 2.1 lakh crore infusion in the course of 2017-18 and 2018-19 with the objective of strengthening them in the face of mounting non-performing assets (NPAs).

As per the plan, the PSBs are to get Rs 1.35 lakh crore through re-capitalisation bonds, and the balance Rs 58,000 crore through raising of capital from the market.

In 2017-18, Rs 88,139 crore was infused into 20 public sector banks (PSBs).

The banks will get capital infusion of Rs 65,000 crore in 2018-19.

Earlier in July this year, five PSBs including Punjab National Bank, Corporation Bank and Andhra Bank had received a total of Rs 11,336 crore out of the capital infusion plan for this fiscal.

In this, PNB which is hit by Nirav Modi scam, got the highest amount of Rs 2,816 crore, Allahabad Bank Rs 1,790 crore, Andhra Bank Rs 2,019 crore, Indian Overseas Bank Rs 2,157 crore and Corporation Bank Rs 2,555 crore.