new delhi jul 30 bank of india will issue shares on a preferential basis to the government for capital infusion of rs 1338 crore the public lender today said the bank will seek shareholder approval for the same at its extraordinary general meeting to be held on august 30 an extraordinary general meeting will be held on august 30 2016 to consider a special resolution to create offer issue and allot up to 120660113 shares of rs 10 each aggregating up to rs 1338 crore on preferential basis to the government the bank said in a regulatory filing on the proposed preferential issue boi said there is an everincreasing need to raise capital for the bank to comply with basel ii and iii capital adequacy norms the capital raised would be utilised to shore up the capital adequacy of the bank and fund the general business needs the bank added earlier this month the government announced capital infusion of rs 22915 crore in 13 public sector banks for the current fiscal and bank of india is to get rs 1784 crore however the rs 1338 crore the bank will get in lieu of preference equity to the government works out to 75 per cent of the portion meant for each of these 13 banks 75 per cent of the amount collected for each bank is being released now to provide liquidity support for lending operations and enable banks to raise funds from the market the finance ministry had said in a release the remaining amount will be released later which will be based on banks performance with particular reference to greater efficiency growth of both credit and deposits and reduction in cost of operations bank of india stock closed at rs 11120 on bse on friday up 041 per cent from its previous level kpm ard