TOKYO, April 11 (Reuters) - Japan's Sendai Bank said on Monday it may seek an injection of public funds to bolster its capital, becoming the first lender to signal that it may tap a government scheme to help banks hurt by last month's devastating earthquake and tsunami.
Sendai Bank, an unlisted lender based in the tsunami-damaged northeast, also said it was putting on hold a planned merger with Kirayaka Bank .
Last week, Japan's Financial Services Agency said it would not look to hold executives accountable when injecting public funds, relaxing its rules to make it easier for banks suffering from the impact of the March 11 quake to seek a taxpayer bailout.
There are eight regional banks in Fukushima, Miyagi and Iwate, the three Japanese prefectures that bore the brunt of the damage from the disaster.
The biggest is Miyagi prefecture's 77 Bank , with more than 5 trillion yen ($59 billion) in deposits. followed by Toho Bank , the leading bank in Fukushima, with deposits of 2.8 trillion yen. The Bank of Iwate is No. 3 with some 2.2 trillion yen in deposits. ($1 = 84.720 Japanese Yen) (Reporting by Tim Kelly; Editing by Edmund Klamann)