Bank of India, which is three-quarters owned by the Indian government, was earlier this month placed under the central bank’s prompt corrective action (PCA) framework due to high non-performing loans and insufficient core capital.
Two other state-run lenders – Central Bank of India and Dena Bank – also said on Saturday the Indian government would be injecting 3.23 billion rupees and 2.43 billion rupees into them, respectively.
IDBI Bank is getting 27.29 billion rupees from the government in the latest round, the lender told stock exchanges late on Friday. The government is also injecting funds into UCO Bank and Bank of Maharashtra.
The measures are part of a bid by the government to tackle a major drag on the economy that has frustrated attempts to boost growth.
© Thomson Reuters 2017
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