UCO Bank to raise ₹2,000 crore via QIP this quarter

The government has recently approved the QIP plan to raise up to ₹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%.

The Government of India holds 95.39% 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% in them.

As per the Securities and Exchange Board of India (SEBI), all listed companies must maintain an MPS of 25%.

The Kolkata-based lender had logged a net profit of ₹503 crore in the same quarter a year ago.

Operating profit also rose to ₹1,586 crore against ₹1,119 crore in the December 2023 quarter.

Total income increased to ₹7,406 crore compared to ₹6,413 crore in the same period last year, UCO Bank said in a regulatory filing.

Interest income also rose to ₹6,220 crore from ₹5,552 crore a year ago.

Net Interest Income (NII) during the quarter rose by 20% to ₹2,378 crore over ₹1,988 crore for the same period of the preceding year.