UCO to get Rs 750 crore from govt this month

State-owned UCO Bank expects to receive Rs 750 crore from the government this month to shore up capital, Chairman and Managing Director SK Goel, said on Tuesday.

“We are supposed to get RS 1,200 crore from the government and received the first tranche of Rs 450 crore in March and expect the remaining disbursal this month,” he said.

An official with the bank said the remaining Rs 750 crore could be given in the form of preferential allotment of shares. Goel reiterated the bank’s intention to acquire a smaller public sector bank, but said nothing further has been finalised. The bank requires government approval for any such merger or acquisition.

He refused to comment on reports that the bank was going in for a Rs 800 crore follow-on public offer in January. The issue will result in the government’s stake falling to 52 per cent from the current 64 per cent. The bank is planning to enter the insurance space with a 30 per cent stake in a venture, which it intends to launch with strategic partners.

“We are currently awaiting Reserve Bank of India’s approval for our insurance foray. Once the approval comes through, we will be ready to roll out our services and provide a wide range of financial products to our customers,” he said.