IDBI Bank gets Rs 3,119.04-cr aid from govt

Under the scheme,the government would buy 25.95 crore equity shares at Rs 120.19 a piece as part of its planned capital support to banks.

Approval in this regard was accorded by shareholders at the sixth AGM of the bank last week,which is subject to allotment of the shares in terms of the prescribed statutory and regulatory formalities,IDBI Bank said in a statement.

The government currently holds 52.6 per cent stake in the bank. Post-capital infusion,the stake of the Central Government would go up to 65.15 per cent.

Finance Minister Pranab Mukherjee had,in the last budget,announced that the government plans capital support of Rs 15,000 crore to public sector banks in the current fiscal to ensure that they attain a minimum of 8 per cent Tier-I capital by March 31,2011.

Following this,the Cabinet approved the capital infusion plan,which would help public sector banks increase their lending capacity by Rs 1.85 lakh crore.

Three other banks 8212; namely Union Bank,Bank of Maharashtra and UCO Bank 8212; would also get capital under the scheme.