Syndicate Bank to get Rs 539 cr fund infusion from govt

State-owned Syndicate Bank today said it would raise up to Rs 539 crore through issue of preferential shares to the government of India.

The bank has initiated the process to raise capital by issue of shares on preferential basis to the government of India or LIC, Syndicate Bank said in a statement.

The bank would complete the formalities by March 31, 2012, it said.

The decision was taken in a meeting of committee of directors formed to decide on the quantum of fund raising via issue of preferential shares on February, 18.

Last fiscal, the bank got capital support of Rs 633 crore from the government.

In 2010-11, the government provided capital support to the tune of Rs 20,157 crore to public sector banks.

Most of the public sector banks got capital support from the government last fiscal. These banks included Bank of Baroda, Union Bank of India, Oriental Bank of Commerce, UCO Bank and Dena Bank.

Source: Business Standard