After the meeting of Board of Directors, Oriental Bank of Commerce announced that Central Government will infuse Rs. 1,740 crore in the bank to shore up the bank's equity capital.

In the recent meeting of Board of Directors, held on March, 5, 2011 it was decided that the public sector Bank will raise Rs. 1740 crore. This will be done by creating, offering and issuing 4, 12,21,491 equity shares. These shares will have a value of Rs. 10 each and issue price of Rs. 422.11.

Issue price also includes premium. Bank said in its filing to Bombay Stock Exchange that it will aggregate Rs. 1740 crore approximately, to the Government of India. This will be as per the terms of SEBI (ICDR) Regulations, 2009.

This capital infusion by government in the bank would raise government's stake in the bank. Currently government's stake in the bank is 51.09 percent. In its filing to Bombay Stock Exchange, bank has called an Extra Ordinary General Meeting on March, 29. Purpose of this meeting is to seek approval for preferential allotment of equity shares to the government, as per the filing. Other crucial decisions were also taken in the meeting.