Press Trust Of India / Mumbai May 28, 2009, 00:41 IST
Kolkata-based state-owned lender Uco Bank has put on hold its plans for a follow-on-public issue (FPO) to raise around Rs 450-crore.
“We have decided to wait till the market situations improve further prior to launching the FPO.... May be till the BSE Sensex returns to the 18,000-level,” Uco Bank Chairman and Managing Director S K Goel, said here on Wednesday.
The government had committed Rs 1,200-crore capital infusion to Uco Bank, out of which the lender has already received Rs 450 crore. The bank was expecting to receive the second tranche of Rs 750-crore before July, which would make its capital position more comfortable, Goel said.
“The government has indicated that they will provide the remaining amount before July. Once we receive this capital, there is no urgent requirement to tap the capital market,” he said.
The capital will be raised through the issue of perpetual non-cumulative preference shares, Goel said. Presently, the government has 63.59 per cent stake in the bank.
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