(India) – The Indian Government is placing a further Rs770 crore in Indian Bank next fiscal after having already provided Rs1300 in this year’s budget, to enable the ailing Bank to meet Reserve Bank (RBI) norms.Following the first of these capital injections, the Bank is expected to have a positive net worth, with the additional Rs770 crore next fiscal helping compliance with the RBI’s minimum capital adequacy ratio of 9.0 percent.
Indian Bank turned in an operating profit of Rs102 crore in the nine month period ending December last, following a Rs239.92 crore loss in its December 1999 year.