In a bid to enhance its capital base, state-run Oriental Bank of Commerce is seeking capital infusion of Rs 1,600 crore from the government during the current fiscal. The fund would be utilised for expanding business of the bank. Earlier in March 2011, the bank had received a capital support of Rs 1,740 crore as part of recapitalisation package. The fund was raised through preferential allotment of about 4 crore equity shares of Rs 10 each for cash at an issue price of Rs 422.11 per unit. As a result, government’s holding in the bank had rose from 51.09% to 58%.
Oriental Bank of Commerce is a government of India undertaking whose business activities includes monetary intermediation of commercial banks, saving banks and discount houses.
