The government of India has announced a capital infusion of Rs 11,336 crore in five banks via the Indradhanush Scheme of 2015. Five public sector banks namely IOB, Corporation Bank, Punjab National Bank, Andhra Bank and Allahabad Bank are scheduled to get this capital infusion.
The capital infusion which was approved by the finance ministry aims to assist these banks to meet their regulatory capital requirement.
The infusion comprised of Rs. 2,816 crore for Punjab National Bank, Rs. 2,555 for Corporation Bank, Rs. 2,157 crore for Indian Overseas Bank, Rs. 2,019 crore for Andhra Bank and Rs. 1,790 crore for Allahabad Bank.
The capital infusion plan gets mixed impacted on the stocks of these public sector banks. During late morning hours of trade in stock market, the stock of Punjab National Bank was trading at Rs. 75.95 down by 3.49%, and Allahabad was at Rs. 40.40 down by 4.27% and Andhara Bank was at Rs. 30.60 down by 1.13% whereas Indian overseas was trading up at Rs. 14.30 by 6.32% and Corporation bank up by 3.42% at Rs. 27.20 on NSE.
In the meantime, the BSE Sensex was at 36,639.53, up 120 points and NSE Nifty50 was at 11,050, up 42 points on Wednesday.