Dena Bank, the state-run lender, has sought capital infusion of around Rs 1,200 crore from Government of India (GoI) in the current fiscal. The bank’s total capital adequacy ratio stands at 11.14% while the Tier-I capital adequacy ratio stands at 7.43%.
The government had infused Rs 700 crore last year into the Mumbai-based mid-sized lender as part of the overall Rs 14,000-crore recapitalization of state-run banks. In FY14, the bank deferred its plan to raise nearly Rs 570 crore through qualified institutional placement, owing to the weak market condition.
In the interim Budget, the government had earmarked Rs 11,200 crore for capital infusion in public sector banks during 2014-15 and the new government has ruled out allocating more funds this fiscal for banks.
