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UCO Bank seeks Rs 1,000 crore capital infusion from govt

UCO Bank

UCO BankNew Delhi: State-owned UCO Bank today said it has sought capital support worth Rs 1,000 crore from the government for the current fiscal to meet its growth plans.

“We would require Rs 15,000 crore as tier I capital in the next three years. We have requested the governemnt for some Rs 1,000 crore (during the current fiscal),” UCO Bank Chairman and Managing Director Arun Kaul said on the sidelines of a Skoch event.

Last fiscal, the Kolkata-based bank got capital support worth Rs 200 crore from the government.

Asked if the bank would tap capital markets to raise funds besides the government’s capital infusion programme, he said the bank is keeping all options open and would take a call at the appropriate time.

Various options like rights issue, qualified insititutional placement, employees stock option scheme are available, he said, “but when and how much would be decided at appropriate time.” The bank expects credit and deposit growth of 15-16 per cent in 2014-15, he added. “Last year, growth was 15-16 per cent (credit and deposit) so we expect similar growth this year as well,” he said.

The bank recorded nearly six-fold jump in net profit at Rs 285 crore for the fourth quarter of FY’14.

The lender had reported a net profit of Rs 49.5 crore in the corresponding period of the previous fiscal.

The bank’s total income increased from Rs 4,527 crore for the quarter ended March 31, 2013, to Rs 5,309 crore for the quarter ended March 31, 2014.


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