The bank’s board has approved the proposal to raise capital through preferential allotment of equity shares in favour of the Government of India.
Canara Bank, in a BSE filing, was quoted by the Press Trust of India (PTI) as saying: "Based on the letter received from the government on infusion of capital funds, the board of the bank, at its meeting held on August 31, 2015, has considered and approved the proposal regarding raising of capital amounting to Rs 947 crore by way of preferential allotment of equity shares in favour of the government."
Last week, State Bank of India also said that it will issue equity shares on a preferential basis to the government for a capital injection of $811.9m (INR53.93bn).
At the starting of this month, the government announced plans to provide $3.02bn (INR200.88bn) to 13 public sector banks, comprising SBI, PNB, IDBI, Bank of Baroda, Canara Bank, Indian Overseas Bank and Union Bank of India.
Based in Bengaluru, Canara Bank has around 5,705 branches in India. It also has offices in other countries in London, Hong Kong, Moscow, Shanghai, Doha, Dubai, and New York.
Image:Indian Government to provide about INR9.47bn of equity capital to Canara Bank. Photo: courtesy of FreeImages.com / Stephen Williams.
