Dena Bank gets "infused"

Dena Bank has been interchangeably holding the position of either top gainer or second top gainer since the opening bell today morning. The stock price rose almost 7.5% to Rs.39.80, very close to its 52-week high of Rs.41.90.

On Friday, Govt approved the second tranche of capital infusion in PSU banks to improve their capital base and Dena Bank was announced a recipient amongst others.

Dena Bank will get a capital allocation of Rs600 crore as part of turnaround linked infusion plan.

The first round of capital infusion happened in July’16 and the Govt then had allocated Rs.22,915 crore out of the 25,000 crore marked for 13 PSU banks in current fiscal. 75% of this allocated funding has already been released to the banks. The second tranche is of Rs.8000 crore.

All this is part of the Indradhanush plans of the Govt where it has earmarked infusion of Rs.70,000 crore in PSU banks over the next four fiscals.