In a regulatory filing to the stock exchanges, public sector lender Indian Overseas Bank has received Rs 4,360 crore capital infusion from the government in the preferential allocation of equity shares during the financial year 2019-20 as centre’s investment.
Last year, the Union Finance Ministry had stated capital infusion of Rs 3,800 crore which was later augmented by Rs 560 crore.
The bank had said it would receive a capital infusion of Rs 4,360 crore from the centre in the current financial year for meeting the regulatory guidelines.
Indian Overseas Bank has been put under the Prompt Corrective Action framework of the Reserve Bank of India. The bank reported increase of net loss to Rs 2,253.64 crore for the quarter ending September 2019.
The Prompt Corrective Action framework comes into action when the lenders violate the three key regulatory points such as capital to risk-weighted assets ratio, net non-performing assets and return on assets.