December 30, 2017 / 12:41 PM / a year ago

State-run Bank of India says gets $354 million capital from government

FILE PHOTO: A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, November 15, 2016. REUTERS/Mukesh Gupta/File Photo

MUMBAI (Reuters) - State-run Bank of India, the country’s sixth biggest lender by assets, said on Saturday it received 22.57 billion rupees ($353.6 million) from the government, joining other lenders in which the government is injecting funds to shore up their capital base.

Bank of India, which is three-quarters owned by the Indian government, was earlier this month placed under the central bank’s prompt corrective action (PCA) framework due to high non-performing loans and insufficient core capital.

Two other state-run lenders - Central Bank of India and Dena Bank - also said on Saturday the Indian government would be injecting 3.23 billion rupees and 2.43 billion rupees into them, respectively.

IDBI Bank is getting 27.29 billion rupees from the government in the latest round, the lender told stock exchanges late on Friday. The government is also injecting funds into UCO Bank and Bank of Maharashtra.[bit.ly/2DAbnae]

The measures are part of a bid by the government to tackle a major drag on the economy that has frustrated attempts to boost growth.

($1 = 63.8300 Indian rupees)

Reporting by Promit Mukherjee; Editing by Andrew Bolton

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