Centre to infuse Rs 5000 Crore in Public Sector Banks by end of march,31st – The Indian government has decided to infuse the fresh round of Capitalization with additional capital of about Rs 5,050 crore in some public sector banks including UCO Bank and Syndicate Bank by end of this march 2016.
Other Public Sector Bank considered for fresh round of infusion are Central Bank of India, Indian Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India.
[box type=”info” align=”aligncenter” ]Earlier 13 public sectors banks were given fund support of Rs 19,950 crore. Of this, State Bank of India got the highest amount of Rs 5,393 crore followed by Bank of India at Rs 2,455 crore, Rs 2,229 crore in IDBI Bank, Indian Overseas Bank Rs 2,009 crore and Punjab National Bank Rs 1,732 crore.[/box]
All these capital infusion are part of Rs 25,000 crore capital infusion plan earmarked for the current fiscal.
Parliament has already approved Rs 5,050 crore for meeting additional expenditure on recapitalization of public sector banks earlier this month.
What are preferential allotments?
Preferential allotments is generally the bulk allotment to individuals, companies, venture capitalists or any other person through a fresh issue of shares. This is the process through which [highlight]entire allotment is made to pre-identified people[/highlight].Individual allotted may or may not be existing shareholders of the company, at a pre-determined price.