UCO bank to raise upto Rs 1500 crore

Sarkaritel
By Sarkaritel January 18, 2019 09:20


Kolkata, Jan 18  Following the Rs 3,076 crore capital infusion by the Central government, state-run UCO Bank on Thursday said it is planning to raise equity capital fund up to Rs 1,000 crore through qualified institutions placement (QIP).

Additionally, the lender is also planning to raise tier-II capital up to Rs 500 crore.

“The board of directors at its meeting held today (Thursday) approved raising of equity capital fund up to Rs 1,000 crore through qualified institutions placement and raising of tier II capital upto Rs 500 crore,” the bank said in a regulatory filing.

The Central government had infused Rs 3,076 crore of capital into it by way of preferential allotment and the bank received the same on December 31, 2018. Following this, the bank’s board on Thursday approved issuing of equity shares on preferential basis to the Central government against the capital infusion.

The government holds 90.8 per cent stake in the lender as on December 31, 2018.

By the end of second quarter of 2018-19 (FY19), its capital adequate ratio (Basel III) stood at 7.57 per cent as against 9.32 per cent a year ago.

The lender posted Rs 1136.44 crore net loss for the second quarter of FY19 against a net loss of Rs 622.56 crore for the same period of previous fiscal as provision to cover bad loans increased.

The lender’s board also approved issue of up to 20 crore equity shares under employee stock purchase scheme.

Sarkaritel
By Sarkaritel January 18, 2019 09:20