Central Government has extended support to the potential candidates for privatization i.e. IOB, Bank of India, UCO Bank. The governmentre will subscribe to equity shares worth ₹4,100 crore in state-owned Indian Overseas Bank (IOB).
Similarly, the Centre proposes to subscribe to 42.14 crore equity shares worth ₹3,000 crore in Bank of India through preferential allotment route at a price of ₹71.23 per equity share. Currently, the Centre has 89.10 per cent shareholding in Bank of India.
In the case of UCO Bank, the Centre will subscribe through preferential allotment as many as 203.76 crore equity shares worth ₹2,600 crore at a price of ₹12.76 per share. The Centre currently holds 94.44 per cent stake in UCO Bank.
Also Read – BOB is Now Added as a Potential Bank for Privatization
The capital raised by these banks through this route would be utilized for the purpose of shoring up of common equity and Tier-I capital of the bank.