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Informist, Tuesday, Jan. 21, 2025

--UCO Bank MD Kumar: Plan to do INR-20-bln QIP in single tranche in Jan-Mar 
--UCO Bank MD Kumar:INR 20-bln QIP in Jan-Mar to bring down govt stake by 3% 
--CONTEXT:UCO Bk MD Ashwani Kumar's comments in post-earnings press briefing 
--UCO Bank MD Kumar: Plan to launch QIP worth INR 20 billion in Jan-Mar 

NEW DELHI – State-owned UCO Bank aims to launch a qualified institutional placement to raise around INR 20 billion by March-end, Managing Director and Chief Executive Officer Ashwani Kumar said Tuesday. The bank has already held roadshows to gauge investor appetite and expects to raise the amount in a single tranche, he said. "We have received good investor feedback, we plan to do it at an opportune time," he said at a post-earnings press conference. 

The qualified institutional placement will help the bank in bringing down the government's stake in the bank by 3%, he said. The government currently holds 95.39% stake in UCO Bank. Shares of the company closed at INR 44.09 on the National Stock Exchange, down 1.1% from the previous close. 

UCO Bank had earlier announced plans to issue up to 4 billion shares, with a face value of INR 10 each, to help meet the mandated minimum public shareholding norm. The finance ministry has asked five public sector banks to increase the minimum public shareholding to 25% by Aug. 1, 2026. This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which mandates all listed companies, including public sector ones, to have a minimum public shareholding of 25%.

The bank's earnings released earlier in the day showed robust net interest income and a sharp rise in other income, which led UCO Bank to report healthy on-year growth of 27.05% in net profit for the December quarter at INR 6.39 billion. The Kolkata-based lender's asset quality also improved during the quarter.  End

Reported by Priyasmita Dutta

Written by Sagar Sen

Edited by Avishek Dutta

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