Centre plans to infuse Rs 2159 crore in United Bank of India

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Public lender United Bank of India said that centre is planning to infuse Rs 2,159 crore in the bank as a part of its Rs 28,615 crore capital infusion plan meant for seven banks.

TRecapitalisationhe Union Ministry of Finance had informed the lender about the infusion on December 26, United Bank of India said in its regulatory filing.

“The bank proposes to secure the shareholders’ approval to the proposed preferential allotment by a Special Resolution by convening an Extraordinary General Meeting shortly. Till such time all formalities are completed and allotment made, the amount shall remain in Share Application Money Account,” it said.

Sources suggest that the government has planned to infuse Rs 28,615 crore across seven public sector banks (PSBs) via recapitalisation bonds in near future.

Out of the seven selected public sector lenders, Bank of India is most likely to get the highest amount of share of Rs 10,086 crore, followed by Oriental Bank of Commerce with Rs 5,500 crore via recapitalisation.

Other lenders in this category are Bank of Maharashtra likely to receive Rs 4,498 crore and UCO Bank (Rs 3,056 crore).

In 2018-19, the centre had announced an infusion worth Rs 65,000 crore in PSBs, out of which Rs 23,000 crore had been cleared already, while Rs 42,000 crore is still remaining.

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