United Bank to float IPO in December

United Bank of India (UBI) has drawn up plans to float an initial public offer (IPO) in December this year, bank Chairman and Managing Director S C Gupta said today.     

Gupta told reporters that irrespective of the stock market conditions prevailing in December, the bank would float the public offer. It would receive a very good response, he said.     

The government had already approved the capital restructuring exercise of the bank, he said on the sidelines of the Ficci Banking Conclave here.     

Under this, out of the paid-up capital of Rs 1,532 crore, Rs 1,266 crore would be returned to the government as capital receipts after which the government would provide the amount to be kept as capital reserves of the bank.     

Gupta said the capital level of the bank was comfortable.     

He said the bank was expecting to receive Rs 550 crore as perpetual non-cumulative preference shares. The government earlier had already given Rs 250 crore on this account to the bank.     

To a query, he said the bank was yet to work on the extent of dilution and size of the issue.     

Gupta said with inflation coming down, the bank would lower interest rates shortly.