Kolkata, June 18 (IANS) State-run lender UCO Bank on Saturday said it has got the board’s approval to raise a total of Rs 5,743 crore of tier I and tier II capital.
“The Board of Directors of the Bank has approved the proposal for raising of Tier I capital to the tune of Rs 4,243 crore through issue of AT-1 Bonds, issue of equity shares through FPO/preferential Issue/ESOPs/QIP etc,” the bank said in a filing to Bombay Stock Exchange.
“It (the board) has also approved the proposal for raising Tier II capital to the tune of Rs 1,500 crore through issue of Tier II bonds during the year financial years 2016-17 and 2017-18, depending upon the market conditions,” it said.
The bank received Rs 935 crore from the central government against the fresh issue of 22.55 crore shares to them on a preferential basis. Its Basel III capital adequacy ratio stood at 9.63 percent at the end March 2016.
The bank reported a net loss of Rs 1,715.16 crore for the quarter ended March 31, 2016 as against a net profit of Rs 209.28 crore for the same period a year ago on account of close to 54 per cent year-on-year decline in its operating profit and a whopping 142 percent year on year rise in provisions to cover a huge surge in bad loans.