For enhancing its capital base, Indian Oversea Bank (IOB) has sought capital support of Rs 2,100 crore from the government. The bank’s total capital funds stood at Rs 18,366 crore as of March 2013, due to allotment of preferential shares to the government of India. It got Rs 1,000 crore from the government last fiscal as part of recapitalisation package.
The government had said that all public sector banks are meeting Basel III requirements for capitalisation, though four of them — Indian Overseas Bank, IDBI Bank, Bank of Maharashtra and Dena Bank have Tier-1 capital below 8 per cent.
The Union Finance Minister Palaniappan Chidambaram stated in recent past that before the end of March 2013, the government should provide Rs 12,517 crore to infuse additional capital into 13 public sector banks.
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