Dena Bank, Allahabad Bank receive Rs 1,100-crore capital infusion from government

The government on Thursday infused Rs 700 crore and Rs 400 crore in Dena Bank and Allahabad Bank, respectively, through preferential share allotment route.. Dena Bank alloted 11.85 crore shares of Rs 10 each to the government on preferential-allotment basis at a price of Rs 59.03 per share, the lender said in a statement.. Accordingly, it said, the government has infused a capital of Rs 699.99 crore towards issuance and allotment of equity shares on preferential basis.. Post-capital infusion, the bank's paid-up capital share increased from Rs 350.05 crore to Rs 468.64 crore and government holding in the bank increased from 55.24 per cent to 66.57 per cent, it said.. Dena Bank shareholders have approved raising of up to Rs 800 crore via shares by way of qualified institutional placement (QIP) in one or more tranches.. Allahabad Bank allotted 4.45 shares of face value of Rs 10 each for cash at an issue price of Rs 89.72 per equity share on preferential basis to the government of India, the lender said in a filing to the BSE.. The government has infused Rs 400 crore in the bank. Subsequently, government holding in the bank increased to 58.90 per cent from 55.24 per cent.. The capital infusion by the government has been carried out with the twin objective of adequately meeting the credit requirement of the productive sectors as well as to maintain regulatory capital adequacy ratios in public sector banks (PSBs).. Infusion of capital by government in PSBs is in addition to their internally generated capital to enable the banks to maintain a comfortable level of Tier-I capital.. A total of Rs 12,517 crore was infused in 13 PSBs during 2012-13.

Dena Bank, Allahabad Bank receive Rs 1,100-crore capital infusion from government

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