UCO Bank aims 7-10% growth in FY22, allots shares to government

City-based UCO Bank on Friday said it was aiming at a growth of 7-10 per cent in the current fiscal amid the second round of restructuring guidelines from the regulator due to the second wave of COVID-19 disruptions.

The bank also allotted 203.76 lakh shares to the government at Rs 12.76 per share against Rs 2,600 crore infusion in the bank. The bank board had also approved a further capital raising plan of Rs 3,000 crore in 2021-22.

"We are hopeful for a business growth of 7-10 per cent in the current fiscal. We will do better in the current fiscal as our provisioning will be lower going forward and maintain net interest margin (NIM) target of 2.7-2.75 per cent," the bank's MD and CEO A K Goel said.

He said based on the restructuring demand for the first wave of Covid-19 "we expect the demand for restructuring may be between Rs 750-1,000 crore even though we will not decline anyone eligible."

"In the previous round, the total demand was less than Rs 400 crore. In this round retail stress may be more. There is no major demand from large corporates. However, a clear picture will emerge by the end of June," Goel said.