UCO Bank to raise capital through various sources

UCO Bank notified the exchange that the bank's board has given approval pertaining to raising capital through various sources. 

The Board of Directors of UCO Bank approved the issue of equity shares on a preferential basis to the Government of India in exchange for the capital infusion of Rs. 3,076 crore. The Kolkata-based bank received these funds as part of the central government's recapitalisation initiative for public sector lenders. The bank is placed under RBI's prompt corrective action (PCA) framework due to the deterioration of its capital adequacy ratio and rising non-performing assets (NPAs). 

The board also approved raising of capital worth Rs. 1,000 crore by issuing equity shares through Qualified Institutions Placement. Additionally, the company received approval to raise Tier-II capital upto Rs. 500 crore. 

The Board also approved the issuance of up to 20,00,00,000 equity shares under the Employee Stock Exchange Scheme. 

On Thursday, the stock of UCO Bank opened at Rs. 20.85 per share and hit a high and low of Rs. 21.15 and Rs. 20.50, respectively. The stock closed at Rs. 20.80 per share, up 0.73 per cent on NSE.