The state-owned Life Insurance Corporation (LIC) has pumped in Rs2,137 crore in four public sector banks through the preference share route.
Life insurance monolith LIC, according to separate filings in BSE, has pumped in Rs1,037 crore in Bank of India (BOI), Rs650 crore in Union Bank of India (UBI), Rs302 crore in Indian Overseas Bank(IOB)and Rs148 crore in the United Bank of India. All
these banks have issued preferential shares to the LIC. The infusion of capital is expected to help the PSU lenders to enhancing their lending activity and meet the capital adequacy norms.
The Indian Overseas Bank, according to a BSE filing, has also approved capital infusion of Rs1,440 crore by the government. The capital infusion in IOB is part of the drive of the government to recapitalise the public sector banks.