UCO Bank plans to raise Rs 75 cr capital

State run UCO Bank on Tuesday said it is planning to raise Rs 75 crore of equity capital during the current financial year in one or more tranches.

The bank’s board in its meet scheduled to be held on next Friday will consider the proposal of raising equity capital.

“The Board of Directors of our bank at its meeting scheduled to be held on May 12, 2017, will, inter alia, consider the proposal for issue of Rs 75 crore equity shares during the financial year 2017-18 in one or more tranches through FPO (follow-on public offer), QIP (Qualified institutional placement)/ preferential issue/ESOPs (employee stock ownership plans) etc., at such an issue price to be determined in accordance with the external guidelines,” UCO Bank said in a regulatory filing.

The board, in March, had also approved the proposal for issue of Tier II bonds of Rs 1,000 crore from Life Insurance Corporation of India (LIC), the country’s largest insurer.

The bank’s capital adequacy ratio stood at 10.60 per cent at the end of December quarter of the last fiscal against 10.49 per cent in the September quarter.

Government shareholding in the bank was 76.67 per cent as on March 31, 2017.

On Tuesday, UCO Bank’s scrip increased marginally by 0.71 per cent to Rs 42.65 at the end of day’s trade on the BSE.

UCO Bank plans to raise Rs 75 cr capital