Cabinet infuses Rs 3,800 cr in three banks to raise capital adequacy

New Delhi, Feb 11 (ANI): The Union Cabinet today announced Rs 3,800-crore fund infusion into state-run lenders - UCO Bank, Central Bank of India and Vijaya Bank to shore up their capital adequacy.

Under the recapitalisation package Central Bank of India will get Rs 1,400 crore, while UCO Bank and Vijaya Bank will get Rs 1,200 crore each.

The amount would be form a part of Tier I Capital. The infusion would increase the government holding in the three state-run banks.

The increase in the government's holding in these banks would depend on the instruments that they subscribe.

Under Tier I, banks can raise capital as equity and innovative instruments like perpetual non-cumulative preference shares and perpetual bonds.

The government holding in Central Bank of India currently stands at 80.20 per cent, UCO Bank 75.98 per cent, while in Vijaya Bank it is 53.87 per cent. (ANI)