UPDATE 1-Sumitomo Trust to get JPY20 bln BOJ loan - Nikkei

May 30 (Reuters) - Sumitomo Trust & Banking Co (8403.T: Quote, Profile, Research) will get a 20 billion yen ($208 million) subordinated loan under a framework set up by the Bank of Japan, the Nikkei business daily reported without citing sources.

In March, the Bank of Japan decided to offer up to 1 trillion yen in subordinated loans in order to bolster banks' capital depleted by stock price falls and to keep lending to companies from drying up.

The central bank said in April it would offer domestic banks up to 350 billion yen each in such loans at an interest rate to be set via auctions, the first of which was to be held by the end of May.

Sumitomo Trust placed the minimum bid on Friday morning after determining that demand for the funds would be low, the daily added.

On Friday, the Nikkei reported that Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp, Mizuho Corporate Bank, Mitsubishi UFJ Trust and Banking Corp, Sumitomo Trust & Banking Co and Mizuho Trust & Banking Co (8404.T: Quote, Profile, Research) had decided not to take part in the Bank of Japan's first auction. ($1=96.37 yen) (Reporting by Supantha Mukherjee in Bangalore; Editing by Mike Miller)