UCO Bank eyes Rs 700-cr new share issue

Public sector UCO Bank is expected to hit the capital market around January with a follow-on public offer (FPO) of shares. The Kolkata-based bank plans to raise more than Rs 700 crore from the issue.

Public sector UCO Bank is expected to hit the capital market around January with a follow-on public offer (FPO) of shares. The Kolkata-based bank plans to raise more than Rs 700 crore from the issue.

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S.K. Goel, chairman and managing director of the bank, told Hindustan Times that UCO was awaiting government approval for the FPO proposal.

Most public sector banks that had plans to raise capital had deferred their plans to go to the market this year following adverse market conditions. The banks are mainly trying to meet capital adequacy norms set under the Basel II agreement that seeks to raise the financial cushion for banks to manage lending risks.

UCO has a capital adequacy ratio of 11.75 per cent, and hopes to raise it to 12 per cent.