Govt Approves Over ₹9,000 Crore Capital Infusion In IDBI Bank

The government approved today over ₹9,000 crore capital infusion into IDBI Bankwith an aim to increasing the lender’s capital base.

The Union Cabinet has cleared recapitalisation of IDBI Bank with one-time infusion of funds by both the government and the LIC, Information and Broadcasting Minister Prakash Javadekar told reporters.

LIC, which has a controlling stake in the lender, will infuse Rs 4,700 crore out of the Rs 9,000 crore.

The government will provide Rs 4,557 crore as one-time recapitalisation to IDBI Bank, Javadekar said.

The government had during the Union Budget announced capital infusion of Rs 70,000 into public sector banks.

IDBI Bank expects to exit the Reserve Bank of India’s prompt corrective action (PCA) framework sometime next year , CNBC-TV18 reports.

After the capital Infusion, IDBI Bank expects to raise further capital on its own,  the news channel reported.