Govt to infuse Rs 1,248 cr into UCO, United Bank

The government has decided to infuse Rs 1,248 crore into two public sector banks — UCO Bank and United Bank of India — as part of recapitalisation package to shore up equity capital. The government had decided to infuse Rs 940 crore into the Tier-I capital of the bank by way of preferential allotment of the equity, UCO Bank informed the Bombay Stock Exchange in a filing on Wednesday. Besides, Kolkata-based United Bank of India would get Rs 308 crore.

Also, Allahabad Bank and Chennai-based Indian Overseas Bank will conduct their board meetings on February 18 and February 19, respectively, to consider preferential allotment of equity shares to the Government of India. However, quantum of capital infusion in these two banks are not yet known. The notification in this regard was issued by the government yesterday. Both the banks will have their board meetings on February 19 to consider the capital infusion. The board would consider among other things the reclassification of the authorised capital of the bank, United Bank of India said in a separate filing.

At the same time, Finance Minister Pranab Mukherjee announced capital infusion of Rs 15,000 crore into public sector banks during the current financial year to ensure that these entities are able to attain a minimum eight per cent Tier-I capital by March 31.