Public sector Andhra Bank will get a turnaround-linked capital infusion of Rs 1,100 crore from the government.
The bank will put up the matter at its board meeting for consideration, Andhra Bank said in a stock exchange filing.
Andhra Bank said it received a communication from government stating the bank was identified for capital allocation for 2016-17 as a part of turnaround-linked infusion plan.
"The indicative allocation of capital is Rs 1,100 crore to the bank," it said.
The government has approved the second tranche of capital infusion in public sector banks to enhance their capital base.
The second round of funding entailing about Rs 8,000 crore is based on strict parameters.
The government has already announced a fund infusion of Rs 22,915 crore, out of the Rs 25,000 crore earmarked for 13 PSBs for the current fiscal.
The first tranche was announced in July with the objective of enhancing their lending operations and enabling them to raise more money from the market.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
