Uco Bank to raise funds via equity

KOLKATA, May 5 (Reuters) - State-run Uco Bank plans to raise 3.25 billion rupees through preferential issue of shares by June and convert federal government's equity worth 3 billion rupees into preference shares, a top official said.

"We will be raising funds through issue of preference shares as part of the government approval for capital restructuring," Chairman and Managing Director, S.K. Goel, said.

The government's share will decline to 59 percent from 76 percent after the issue of preference shares and conversion of government equity, he said.

The bank also plans to raise 5-6 billion rupees through a follow-on public offer of shares, he added.

The Kolkata-based bank is looking at loan growth of 20 percent and a deposit growth of 22 percent during the current financial year, which ends in March 2009, Goel said.

(Reporting by Tamajit Pain; Editing by Prem Udayabhanu)

Copyright © 2008 Reuters Limited. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of Reuters Limited

Copyright © 2008 Yahoo! Southeast Asia Pte Ltd (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy - Terms of Service - Community - Help