Three public sector banks to get Rs 3,800 cr capital infusion

New Delhi, Feb 11 (PTI) Three public sector banks -- UCO
Bank, Central Bank of India and Vijaya Bank -- will get Rs
3,800 crore from the Indian government in this fiscal and
2009-10 to help them have more than adequate capital against
various risks.

Under the recapitalisation package approved by the
Cabinet Wednesday, the government would infuse Rs 1,650 crore
into these banks this fiscal and Rs 2,150 crore in 2009-10.

While Central Bank of India will get Rs 1,400 crore, UCO
Bank and Vijaya Bank will get Rs 1,200 crore each, Indian Home
Minister P Chidambaram told reporters after the Cabinet
meeting here.

As part of the first tranche, UCO Bank will get Rs 450
crore, while Central Bank of India and Vijaya Bank will get Rs
700 crore and Rs 500 crore, respectively, in this fiscal.

In the next tranche, UCO Bank will get Rs 750 crore,
while Central Bank of India and Vijaya Bank will receive Rs
700 crore each, Chidambaram said.

He said capital infusion will help the banks raise the
capital adequacy to over 12 per cent, much above the Basel II
norms of 9 per cent.

The amount would form a part of Tier I Capital, he said,
adding that the infusion would increase the government holding
in the three state-owned banks, but exact stake of the owner
would depend on the kind of instruments, which the boards of
banks decide to subscribe to.