mumbainew delhi the government has cleared a rs 6000crore recapitalization of public sector banks psbs even as the life insurance corporation of india lic plays a white knight to stateowned lenders pumping in over rs 2500 crore and nearly doubling its stake in some banksthe government has not yet announced the list of recipient banks for the capital lenders who have lined up for capital infusion include central bank of india indian bank oriental bank of commerce obc united bank of india uco bank and vijaya bank the nine banks in which lic is increasing stake include idbi bank vijaya bank syndicate bank obc indian overseas bank iob and central bank of indiathe capital infusion by the government is part of the rs 25000 crore promised at the beginning of the year in the first round 13 public sector banks received rs 19950 crore which included rs 5393 crore in sbi and rs 2455 crore in bank of india besides the budgeted rs 25000 crore the government had pumped rs 2229 crore into idbi bank rs 2009 crore into indian overseas bank and rs 1732 crore into punjab national bankthe capital needs of public sector banks have gone up after a surge in bad loans in the third quarter the bad loans are expected to continue to eat into bank profits in the fourth quarter and some lenders are likely to go in for a revaluation of their real estate holdings to beef up their capital adequacy requirement the rbi had recently come out with a dispensation allowing banks to reckon some appreciation in value of properties as part of core capitalon monday idbi bank informed the bse that lic has doubled its stake in the public sector bank to 1437 from 721 earlier the additional stake is worth over rs 900 crore vijaya bank will hold an extraordinary general meeting egm on tuesday to approve issue of shares worth rs 226 crore to the insurance giant shareholders of syndicate bank in their egm held on march 31 approved a preferential issue of shares aggregating rs 216 crore to lic the corporation already held close to 10 in the bank as on december 2015obc is also holding an egm on tuesday to issue 25 crore shares representing 836 of the banks paidup capital the issue will result in lics stake in obc increasing to 145 the stake is worth rs 360 crore at current market price shareholders of indian overseas bank on march 24 approved a proposal allowing lic to hike its stake in the bank to 145 from 1021 following a rs 200 crore investment in the bankcentral bank of india is proposing to issue equity shares worth rs 165 crore to lic under a preferential issue which is to be approved by shareholders in an egm on march 30 andhra bank has raised rs 136 crore by issuing 288 crore shares to lic following an approval by shareholders at rs 4730 per shareallahabad bank will hold an egm