Additional capital for Indian Bank
By Our Banking Bureau | 25 Mar 2002
New Delhi: The central government will infuse another Rs 770 crore in Indian Bank in the next fiscal, after providing Rs 1,300 crore in this year’s budget. This is to enable the ailing bank to comply with Reserve Bank of India (RBI) norms.
Says India Bank chairperson Ranjana Kumar: "After the first capital infusion, the bank’s net worth will become positive. The additional Rs 770 crore in the next fiscal will help the bank comply with the RBI-stipulated minimum capital adequacy ratio of 9 per cent."
The recapitalisation from the government was awaited for over a year, but Finance Minister Yashwant Sinha had insisted on better performance as a precondition to capital infusion.
Says India Bank chairperson Ranjana Kumar: "After the first capital infusion, the bank’s net worth will become positive. The additional Rs 770 crore in the next fiscal will help the bank comply with the RBI-stipulated minimum capital adequacy ratio of 9 per cent."The recapitalisation from the government was awaited for over a year, but Finance Minister Yashwant Sinha had insisted on better performance as a precondition to capital infusion.