UCO Bank to raise Rs 775 crore through issue of preferential shares

State run UCO Bank on Monday said it is planning to issue of shares on a preferential basis to the government for a capital infusion of Rs 775 crore.

"...the Board of directors considered the proposal for issue of equity shares to Government of India against their proposed contribution of Rs 775 crore towards equity capital of our Bank on preferential basis at a price determined in accordance with SEBI ICDR Regulations, 2009 and subject to approvals from SEBI, RBI and shareholders," the bank said in a filing to BSE.

Last month, the central government had announced a capital infusion plan of Rs 22, 915 crore in 13 public sector banks for 2016-17.

Among public sector banks, UCO Bank registered the highest increase in NPAs (non-performing assets) in percentage terms against total loans in the last financial year.

As on March 31, 2016, its gross NPA ratio stood at 15.43 per cent with gross NPAs in absolute term was at Rs 20,908 crore.

The bank reported an operating profit of Rs 3,603.39 crore during the last fiscal, but incurred a net loss of Rs 2,799.25 crore due to a whopping Rs 6,403 crore for provisions and contingencies.

--IANS

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