UCO Bank may raise Rs 150 crore Tier II capital by September, 2005 while planning to infuse Tier I capital to meet the Basel II norms of 12 per cent capital adequacy ratio (CAR). | |
| ''We have planned to infuse Tier II capital to the tune of about Rs 150 crore by September,'' V Sridar, chairman of UCO Bank said today. |
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| The bank, which had a CAR of 11.25 per cent in March, 2005, would need fresh infusion of capital in view of the business growth expected this year and the basel II norms. |
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| ''We have targeted 30 per cent growth in business to over Rs 1,00,000 crore in 2005-06. As this will bring the CAR down, we will need fresh infusion of capital to maintain the current levels,'' Sridar said. |
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| The bank, therefore, would also look at raising Tier I capital and seek mandate from shareholders, Reserve Bank of India (RBI) and the Centre in this regard. |
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| Sridar, who declined to divulge the amount to be raised as Tier I capital, had earlier said, the bank may not float a IPO for raising Tier I capital. Instead, the bank would await the RBI's decision regarding the classification of instruments and would take a decision after the RBI came out with definition of new instruments which would be considered as Tier I capital. |
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| Meanwhile, the bank has shortlisted vendors for its Rs 170 crore core banking solutions project to be implemeted in 250 branches in the first phase. |
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| Sridar said, the bank has shortlisted two vendors i-Flex and Infosys for its core banking solutions project which would be implemented over next three years. |
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| He said the vendor would be selected by end of this month. UCO Bank has recently completed computerisation of all its 1735 branches across the country. |
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| The bank had also entered into ATM sharing arrangements with State Bank of India and a consortium of banks called 'Mitr' giving its customers access to 8,200 ATMs all over the country. |
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