The Central Government will infuse Rs.1,740 crore in Oriental Bank of Commerce (OBC) as recapitalisation package to shore up the bank's equity capital.
The bank at its board meeting held on March 5 has approved raising capital by offering or issuing up to 4.12 crore shares of Rs.10 each for cash at a issue price of Rs.422.11 a share aggregating up to Rs.1,740 crore to the government, the bank informed the Bombay Stock Exchange.
The capital infusion would raise the government's holding in the bank. At present, the government holds 51.09 per cent in OBC.
The bank has called Extraordinary General Meeting on March 29 for approval of the preferential allotment of equity shares to the government, it said.
