UBI shareholders approve preferential share allotment to govt

United Bank of India today said its shareholders have approved preferential allotment of 13.7 million equity shares at a price of Rs 72.95 per share to the government.

The move follows the bank's request for Rs 100 crore from the government to strengthen its capital base.

"The infusion of capital would enable the bank to fund the future expansion plan. Besides strengthening the capital base of the bank, the proposed capital infusion in the bank would enhance the lending capacity which in turn would help in credit deployments setting the wheels of economy back in motion," Deepak Narang, executive director of United Bank of India, told shareholders at an extra-ordinary general meeting.

The state-run lender aims to complete the allotment of these equity shares before the close of the financial year.