UCO Bank approaches LIC for equity infusion1 min read . Updated: 08 Aug 2019, 08:57 PM IST
- UCO Bank is looking to raise ₹4,500- 5,000 crore in the current fiscal
- Lender seeks in excess of ₹1,000 crore as equity from the insurance major
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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