Home >Industry >Banking >UCO Bank approaches LIC for equity infusion

KOLKATA : UCO Bank has approached Life Insurance Corporation of India (LIC) for equity infusion, a top official said on Thursday.

The state-owned company is looking to raise 4,500- 5,000 crore in the current fiscal.

"Yes, we approached LIC for equity infusion," UCO Bank Managing Director & CEO A.K. Goel said here.

The lender has sought in excess of 1,000 crore as equity from the insurance major, sources said.

LIC already holds about 4% stake in UCO Bank.

In the quarter to June, the bank had raised Tier-II capital aggregating to 500 crore in Basel III-compliant Tier-II bonds to LIC.

During FY14-FY19, the government and LIC together pumped in 3 trillion in public sector banks, according to a report by India Rating.

The government had recently infused 3,330 crore into the bank to improve capital adequacy.

Meanwhile, Goel said it will take a call about passing on the benefit of RBI's repo rate reduction by 35 basis points.

He said the net NPA will be down to 6% by March, and the provision coverage of bad debt is 77%.

Net NPAs of the lender were 8,781.97 crore at the end of the first quarter as against 12,558 crore in the corresponding period a year ago.

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