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| UCO Bank puts FPO on hold |
| Press Trust of India / Mumbai May 27, 2009, 15:27 IST |
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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 situation improves further prior to launching the FPO.... May be till the BSE sensex returns to 18,000 level," UCO Bank's Chairman and Managing Director, S K Goel, told PTI here.
The Government had committed Rs 1,200 crore capital infusion to Uco Bank, out of which the lender has already recieved Rs 450 crore.
The bank expects to recieve the second tranche, Rs 750 crore before July, which will make its capital position comfortable, Goel said.
"The Government has indicated that they will provide the remaining amount — Rs 750 crore 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 UCO bank. The lender's capital adequacy ratio (CAR) currently stands at around 12 per cent.
Two more PSBs—Central Bank of India and Vijaya Bank are being injected capital of Rs 2,600 crore.
Central Bank has received Rs 700 crore of Rs 1,400 crore of capital to be infused. Government is to infuse Rs 1,200 crore capital in Vijaya Bank.
The capital infusion is aimed at enhancing the capital adequacy of the three public-sector banks and to enable them extend adequate credit to productive sectors.
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