Centre to infuse Rs. 10,086 cr into Bank of India

State-owned Bank of India on Saturday said the government has decided to infuse Rs. 10,086 crore in the bank as part of Rs. 28,615 crore capital infusion to be done in about half a dozen public sector lenders.

The capital infusion was informed by the Finance Ministry to the bank on Wednesday (December 26), Bank of India said in a regulatory filing.

The capital infusion would be via preferential allotment of shares, it said.

The circular resolution would be considered by the board of directors on or after January 2, 2019, the proposal for raising capital by this infusion and further issue of equity shares at an appropriate time and other incidental matters, it said.

The government has decided to pump Rs. 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds soon. United Bank of India, one of the seven PSBs has also received capital infusion communication from the finance ministry. The government has already disbursed Rs. 23,000 crore of the announced infusion of Rs. 65,000 crore in PSBs in 2018-2019, while Rs. 42,000 crore is remaining.

On Monday, the stock of Bank of India opened at Rs. 103.95 per share and touched a high/low of Rs. 105.15/103.30 per share.