Optimistic UBI to float IPO in December

Optimistic UBI to float IPO in December
PTI
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First Published: Mon, Jun 22 2009. 03 46 PM IST
Updated: Mon, Jun 22 2009. 03 46 PM IST
Kolkata: United Bank of India (UBI) has drawn up plans to float an initial public offer (IPO) in December this year, bank chairman and managing director S.C. Gupta said on Monday.
Gupta said irrespective of the stock market conditions prevailing in December, the bank would float the public offer. It would receive a very good response, he said.
The government had already approved the capital restructuring exercise of the bank, Gupta said on the sidelines of the Ficci Banking Conclave.
Under this, out of the paid-up capital of Rs1,532 crore, Rs1,266 crore would be returned to the government as capital receipts after which the government would provide the amount to be kept as capital reserves of the bank.
Gupta said the capital level of the bank was comfortable.
He said the bank was expecting to receive Rs550 crore as perpetual non-cumulative preference shares. The government earlier had already given Rs250 crore on this account to the bank.
The bank was yet to work on the extent of dilution and size of the issue.
Gupta said with inflation coming down, the bank would lower interest rates shortly.
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First Published: Mon, Jun 22 2009. 03 46 PM IST