New Delhi: Public sector Indian Overseas Bank has received capital infusion of Rs 4,360 crore from the government. Also Read - CBI Conducts Searches at 100 Locations Across 11 States in Separate Bank Fraud Cases
In a regulatory filing to the stock exchanges, the bank said it has received the amount as contribution of the government in preferential allotment of equity shares during the financial year 2019-20 as government’s investment. Also Read - These 4 Banks Have Been Shortlisted by Government For Privatisation | All You Need to Know
The bank had said it would receive capital infusion of Rs 4,360 crore from government in the current financial year for meeting the regulatory norms. Also Read - Odisha Man Learns Robbery Techniques From YouTube, Loots 2 Banks to Repay His Loans
Last year, the Finance Ministry had announced capital infusion of Rs 3,800 crore which was later increased by Rs 560 crore.
Indian Overseas Bank is under the Prompt Corrective Action framework of the Reserve Bank of India. The bank has reported widening of net loss to Rs 2,253.64 crore for the quarter ending September 2019.
The Prompt Corrective Action framework comes into force when banks breach the three key regulatory points namely capital to risk weighted assets ratio, net non-performing assets and return on assets.