UCO Bank to raise Rs 300cr

 V Sridar, chairman and managing director, UCO Bank today said: "We will be raising Rs 3,000 crore through upper Tier II bonds and Rs 600 crore by way of hybrid perpetual bonds. We will be hitting the capital market within the next fortnight."

Speaking on the sidelines of the signing of an MoU between UCO Bank and Bajaj Allianz for personal accident cover to Kisan credit cardholders (KCC) here, Sridar said, the bank was currently evaluating the instrument through which it would raise capital in the next fortnight.

 The bank was likely to post around 19% growth in total business at Rs 92,500 crore in FY06. Credit was expected to increase by 34% to Rs 38,000 crore whereas deposits were likely to log a 10.4% growth to Rs 54,500 crore in FY06, said Sridar.

 In FY06, the bank had provided loans to 1.33 lakh new farmers, more than the 1.15 lakh target. The total disbursement was around Rs 2,375 crore, thereby recording a 30.78% growth.

 Outstanding with new farmers was Rs 518.78 crore, out of which Rs 415.77 crore was given to KCC holders. Meanwhile, the bank had issued KCC to over 3.5 lakh farmers, said Sridar.

 "We have selected Bajaj Allianz General Insurance to offer insurance cover to cardholders as they were able to lower the premium and also help in providing accurate MIS to administer the scheme and make it hassle-free," said Sridar.