The Hindu Business Line : UCO keen to rejig capital

UCO Bank has mooted a proposal to the Union Finance Ministry for the restructuring of its capital. "Our equity size at Rs 800 crore is very large," Mr V. Sridar, CMD of the bank, told newspersons here on Monday.

Mr Sridar, however, declined to indicate the mode of restructuring. "Much would depend on the Union Government," he said, pointing out that various alternatives such as preference share of perpetual bonds could be examined. "Since the shares of UCO are listed on stock exchanges, we have some complications," he observed.

Restructuring capital

He indicated the bank might consider going for follow-on public issue in 2007-08, but again much would depend on the restructuring of capital. About Rs 1,000 crore has been raised so far in the current year by way of Tier-II capital and hybrid bonds, he said.

Briefing about the bank's performance in the second quarter ended September 30,the UCO Chairman informed that the net profit during the period at Rs 100 crore (Rs 98 crore in the second quarter of last year) posted a growth 2.04 per cent and operating profit (net of treasury profit) at Rs 231 crore (Rs 156 crore).

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