Govt to infuse Rs 909.9 cr in Andhra Bank, Allahabad Bank

MUMBAI: The government will infuse Rs 909.9 crore as equity capital into two PSU lenders -- Andhra Bank and Allahabad Bank -- as part of recapitalisation package to shore up equity capital.

"The bank is convening an Extraordinary General Meeting of shareholders on March 23, 2011, seeking their approval for issuance of 3.9 crore equity shares at Rs 157.28 per share (face value of Rs 10 each) aggregating to Rs 618 crore to government of India on preferential basis," Andhra Bank informed the Bombay Stock Exchange .

Besides, the Kolkata-based Allahabad Bank is expected to get Rs 291.99 crore by the way of preferential share.

With the capital infusion, the stake of Government of India in Allahabad Bank would go up to 56.48 per cent from existing 55.23 per cent.

The capital infusion has to take place before March this year.

Earlier in the day, Finance Minister Pranab Mukherjee announced capital infusion of Rs 6,000 in the next fiscal to shore up capital.

Source: EconomicTimes