United Bank of India gains as board to consider preferential issue of equity shares

United Bank of India gained 1.17% to Rs 21.60 at 12:35 IST on BSE after the bank said a meeting of the board of directors will be held on 18 December 2015, to consider the proposal to raise equity capital by preferential allotment.

The bank made the announcement during market hours today, 15 December 2015.

Meanwhile, the S&P BSE Sensex was up 30.39 points or 0.12% at 25,179.62.

On BSE, so far 21,300 shares were traded in the counter as against average daily volume of 42,075 shares in the past one quarter.

The stock hit a high of Rs 22.30 and a low of Rs 21.20 so far during the day. The stock had hit a 52-week high of Rs 46.55 on 2 January 2015. The stock had hit a record low of Rs 20.40 on 8 September 2015.

The stock had underperformed the market over the past one month till 14 December 2015, declining 2.29% compared with 1.8% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 0.95% as against Sensex's 2.73% decline.

The mid-cap PSU bank has equity capital of Rs 839.52 crore. Face value per share is Rs 10.

United Bank of India said that a meeting of the board of directors will be held on 18 December 2015, to consider the proposal to raise equity capital by preferential allotment of up to Rs 1500 crore including premium to government or Life Insurance Corporation of India or funds thereof or such other investors as may be decided provided that the government's holding at any time shall not fall below 51% of the equity capital of the bank.

United Bank of India's net profit rose 41.2% to Rs 61.86 crore on 3.2% rise in total income to Rs 2927.19 crore in Q2 September 2015 over Q2 September 2014.

The Government of India held 82% stake in United Bank of India (as per the shareholding pattern as on 30 September 2015).

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