Bank of Baroda gets Rs 2,461 cr govt fund

State-owned Bank of Baroda (BoB) today said it has allotted 2.7 crore shares to the government of India on a preferential basis, resulting in capital infusion of Rs 2,460.9 crore.

As a result, the government of India's holding has increased to 57.03% from 53.81%, BoB said in a statement.

Earlier, shareholders of the bank approved a Special Resolution at an Extraordinary General Meeting for the issue and allotment of 2,72,79,579 equity shares of Rs 10 each to the government at a premium of Rs 892.14 per share, it said.

Finance Minister Pranab Mukherjee had announced a capital infusion of Rs 20,157 crore into public sector banks during the current fiscal to ensure that these entities were able to attain a minimum of 8% Tier-I capital by March 31, 2011.

The proposed capital infusion is to enhance the lending capacity of the state-owned banks to meet the credit needs of the economy in order to maintain and accelerate the economic growth momentum.

Source: Business Standard