Public sector lender Vijaya Bank today said it has received Rs 700 crore from the government as part of the package to shore up capital of state-run lenders.
"The government of India, a major shareholder of the bank, has subscribed a sum of Rs 700 crore in innovative Tier 1 capital instruments in the bank," Vijaya Bank informed the Bombay Stock Exchange.
The bank will issue perpetual non-cumulative preference shares (PNCPS) to the government, it said.
As on date, the PNCPS issued to the government amount to Rs 1,200 crore, it added.
PNCPS issued to government are not transferable and are not dealt with in the stock exchanges and accordingly cannot be traded or listed.
Late last week, the government approved infusing Rs 6,211 crore into five public sector banks, a move which will help in lending an additional Rs 77,637 crore to various sectors of the economy.
The banks that would get capital infusion include Union Bank of India (Rs 111 crore), Bank of Maharashtra (Rs 590 crore), IDBI Bank (Rs 3,119 crore), UCO Bank (Rs 375 crore) and Central Bank of India (Rs 2,016 crore).
