Chennai: The recapitalisation of 13 government banks, announced by the central government, will result in dilution of their book value per share for banks with larger capital infusion, said investment banking firm Jefferies. In a report, Jefferies said: “Banks with larger capital allocations relative to their common equity tier 1 (CET1) are typically the ones to see a steeper dilution of book value per share, given that stock prices for the SOE (state-owned enterprise) banking space have remained largely depressed for the last several quarters now.”Based on current market prices, the largest book value per share hit will be seen for Indian Overseas Bank (IOB, 28 per cent), United Bank of India (20 per cent), Bank of India (12 per cent) and Dena Bank (12 per cent). At current market prices, the book value dilution is zero per cent for State Bank of India and three per cent for Punjab National Bank.