In March this year, the government had pumped in Rs2,675 crore, thereby increasing its stake to 57.3% from 53% earlier, BoB CMD MD Mallya said, adding with the infusion of Rs775 crore, the government ownership in the bank will touch the mandated 58%
Mumbai: The government has agreed to infuse Rs775 crore into the third largest state-run lender Bank of Baroda (BoB), reports PTI.
“As part of increasing its stake to the mandated 58%, the government has agreed to pump in Rs775 crore into our bank. The fund infusion will happen before the end of the fiscal,” BoB chairman and managing director MD Mallya told PTI.
This could be done by a preferential allotment, he added.
In March this year, the government had pumped in Rs2,675 crore, thereby increasing its stake to 57.3% from 53% earlier, Mr Mallya said, adding with the infusion of Rs775 crore, the government ownership in the bank will touch the mandated 58%.
Some years ago, the government had decided to maintain at least 58% stake in all its banks.
The development comes even as there is no commitment to the over-a-year-old demand from the nation’s largest lender State Bank of India for capital infusion to meet the mandatory core capital requirement and also fund expansion.
The latest on this request, according SBI chairman Pratip Chaudhuri, is that government may infuse Rs3,000-Rs4,000 crore by the end of the year.
SBI has been seeking the government nod to go in for a Rs20,000 crore rights issue since the beginning of fourth quarter of the past fiscal, but a cash-strapped government has not given its permission as it would have to buy nearly two- thirds of the issue.
As per Monday’s market price of Rs678.75, the per share value for the government works out to Rs852, a 26% premium.
But the final issue price will be based on the last six months' average price, which is as per the SEBI (Securities and Exchange Board of India) formula. The move will also boost the CAR which currently stands at 8.8%.
Last month, the bank had informed BSE that it was looking to raise Rs775 crore through a preferential issue of equity shares or convertible warrants before March.
The RBI had pitched for a closely knit nimble footed CMG with representations from the regulatory bodies, namely, RBI, SEBI, IRDA, PFRDA and the Government of India, ministry of finance
New Delhi: The finance ministry on Monday decided to set up a Crisis Management Group (CMG) to deal with the impact of the global problems on the domestic economy, especially on the financial sector, reports PTI.
The decision to set up a CMG was taken at a meeting headed by R Gopalan, secretary Department of Economic Affairs (DEA) in the finance ministry.
“The group will work towards developing an early warning mechanism to avert a crisis,” a senior finance ministry official said, adding it would also include experts.
Among others the meeting was attended by Chief Economic Advisor Kaushik Basu, financial services secretary DK Mittal and disinvestment secretary Mohammad Haleem Khan.
The idea to set up a small group comprising representatives of different regulators to deal with the crisis was mooted by the Reserve Bank of India (RBI).
The RBI had pitched for “a closely knit nimble footed CMG with representations from the regulatory bodies, namely, RBI, SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), PFRDA (Pension Fund Regulatory and Development Authority) and the Government of India, ministry of finance”.
The group, which will be a part of the Financial Stability and Development Council (FSDC), according to sources, will be headed by secretary, DEA.
The group, the official said, would be on the lines of the Financial Stability Oversight Council (FSOC) which was set up by the US administration to identify threats and responding to emerging risks to ensure stability of the financial system.
Riding on a stellar growth in cement, electricity and refinery products, the eight infrastructure sectors which have weightage of 38% in the overall Index of Industrial Production (IIP), grew 6.8% year-on-year as well from 3.7% in November 2010
New Delhi: After touching five-year low of 0.3% in October, growth in key infrastructure industries bounced back in November to 6.8%, thus brightening prospects for industrial production for the month, reports PTI.
Riding on a stellar growth in cement, electricity and refinery products, the eight infrastructure sectors which have weightage of 38% in the overall Index of Industrial Production (IIP), considerably improved year-on-year as well from 3.7% in November 2010.
However, due to lagging performance in the previous months, the April-November growth of the core industries stood at 4.6% as against 5.6% in the same period last fiscal, according to the data released today.
Except for crude oil, natural gas and fertilisers, all other segments registered healthy growth in November.
The maximum growth was witnessed in cement which expanded by 16.6%, while there was a contraction of 4.3% in the same period last fiscal.
Electricity and steel output grew by 14.1% and 5.1% against 3.5% and 7.6%, respectively, in the same month last year.
Coal and petroleum refinery products growth went up by 4.9% and 11.2% in November 2011.
However, crude oil and natural gas output contracted by 5.6% and 10.1% from a positive growth of 17% and 5.5%, year-on-year, respectively.