The government on Wednesday infused funds of Rs 3,800-crore into state-run lenders - UCO Bank along with Central Bank of India and Vijaya Bank in order to soar up their capital adequacy over 12 per cent much above the Basel II norms of 9 per cent. Accordingly, Central Bank of India will get Rs 1,400 crore, while UCO Bank and Vijaya Bank will get Rs 1,200 crore each, Home Minister P Chidambaram told reporters after the cabinet meeting.
The capital infusion into these banks would be done in two tranches. The first tranche would be made available during the current fiscal while the rest in 2009-10. In the first tranche, UCO Bank will get Rs 450 crore while Central Bank of India and Vijaya Bank will get Rs 700 and Rs 500 crore, respectively. In the next tranche, UCO Bank will get Rs 750 crore, while Central Bank of India and Vijaya Bank to get Rs 700 crore each.
He also said that the fund infusion would result in increasing holdings of the government in the three state-run banks.
The capital infusion into these banks would be done in two tranches. The first tranche would be made available during the current fiscal while the rest in 2009-10. In the first tranche, UCO Bank will get Rs 450 crore while Central Bank of India and Vijaya Bank will get Rs 700 and Rs 500 crore, respectively. In the next tranche, UCO Bank will get Rs 750 crore, while Central Bank of India and Vijaya Bank to get Rs 700 crore each.
He also said that the fund infusion would result in increasing holdings of the government in the three state-run banks.
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