Corporation Bank, public sector lender, announced on Monday that the Government of India will infuse capital funds to the tune of Rs 8.57 billion in the bank by way of preferential issue of equity.

"The board of the bank on Aug 24, 2015 has approved infusion of capital of Rs. 8.57 billion and extraordinary General Meeting of the shareholders for seeking its approval for the same," the bank said.

"The bank is in the process of taking necessary steps, approvals for raising the said amount," it added.

Shares of the bank declined Rs 0.2, or 0.43%, to trade at Rs 46.80. The total volume of shares traded was 40,424 at the BSE (11.45 a.m., Tuesday).