UCO Bank to Raise Rs 2,000 Cr via QIP This Quarter
By Rediff Money Desk, New Delhi Jan 21, 2025 18:37
UCO Bank plans to raise Rs 2,000 crore through a Qualified Institutional Placement (QIP) this quarter to comply with Sebi's minimum public shareholding norms. The bank aims to reduce the government's holding by 3%.

Illustration: Dominic Xavier/Rediff.com
New Delhi, Jan 21 (PTI) State-owned UCO Bank on Tuesday said the bank would mobilise Rs 2,000 crore through Qualified Institutional Placement (QIP) during the ongoing quarter to comply with Sebi's minimum public shareholding (MPS) norms.
The government has recently approved the QIP plan to raise up to Rs 2,000 crore, UCO Bank Managing Director and CEO Ashwani Kumar said during an interaction with media on quarterly numbers.
The bank has already appointed merchant bankers and legal advisers for the proposed QIP and started meeting investors, including mutual funds, he said, adding that at an opportune time, the bank would launch QIP in this quarter.
Post QIP, the Government of India's holding would reduce by 3 per cent.
The Government of India holds 95.39 per cent stake in UCO Bank at the end of December 2024.
The government has extended the deadline for meeting minimum public shareholding norms for central public sector enterprises and public sector financial institutions till August 2026.
Of 12 public sector banks (PSBs), five are yet to comply with minimum public shareholding (MPS) norms and the government's holding is beyond 75 per cent in them.
As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent.
Meanwhile, UCO Bank reported a 27 per cent increase in net profit at Rs 639 crore for the third quarter ended December 2024 helped by both interest and non-interest income.
The Kolkata-based lender had logged a net profit of Rs 503 crore in the same quarter a year ago.
Operating profit also rose to Rs 1,586 crore against Rs 1,119 crore in the December 2023 quarter.
Total income increased to Rs 7,406 crore compared to Rs 6,413 crore in the same period last year, UCO Bank said in a regulatory filing.
Interest income also rose to Rs 6,220 crore from Rs 5,552 crore a year ago.
Net Interest Income (NII) during the quarter rose by 20 per cent to Rs 2,378 crore over Rs 1,988 crore for the same period of the preceding year.
The government has recently approved the QIP plan to raise up to Rs 2,000 crore, UCO Bank Managing Director and CEO Ashwani Kumar said during an interaction with media on quarterly numbers.
The bank has already appointed merchant bankers and legal advisers for the proposed QIP and started meeting investors, including mutual funds, he said, adding that at an opportune time, the bank would launch QIP in this quarter.
Post QIP, the Government of India's holding would reduce by 3 per cent.
The Government of India holds 95.39 per cent stake in UCO Bank at the end of December 2024.
The government has extended the deadline for meeting minimum public shareholding norms for central public sector enterprises and public sector financial institutions till August 2026.
Of 12 public sector banks (PSBs), five are yet to comply with minimum public shareholding (MPS) norms and the government's holding is beyond 75 per cent in them.
As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent.
Meanwhile, UCO Bank reported a 27 per cent increase in net profit at Rs 639 crore for the third quarter ended December 2024 helped by both interest and non-interest income.
The Kolkata-based lender had logged a net profit of Rs 503 crore in the same quarter a year ago.
Operating profit also rose to Rs 1,586 crore against Rs 1,119 crore in the December 2023 quarter.
Total income increased to Rs 7,406 crore compared to Rs 6,413 crore in the same period last year, UCO Bank said in a regulatory filing.
Interest income also rose to Rs 6,220 crore from Rs 5,552 crore a year ago.
Net Interest Income (NII) during the quarter rose by 20 per cent to Rs 2,378 crore over Rs 1,988 crore for the same period of the preceding year.
Source: PTI
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