More Stories

Informist, Monday, Apr. 28, 2025

 

Please click here to read all liners published on this story

--UCO Bank MD: Looking to invest over INR 10 bln in tech infra in FY26 
--CONTEXT: Comments by UCO Bank MD Kumar in post-earnings press conference 
--UCO Bank MD: Testing retail CBDC, will launch it in Apr-Jun 
--UCO Bank MD: Hope corporate sector lending to grow 12-13% in FY26 
--UCO Bank MD: Expect NPA recovery of INR 22 bln-INR 25 bln in FY26 
--UCO Bank board OKs raising INR 27 bln via equity in FY26 
--UCO Bk MD: Can meet minimum public float norm FY26 if mkt conditions allow
--UCO Bk MD: To continue to grow in housing, education, vehicle segment FY26

 

NEW DELHI – The Board of state-owned UCO Bank on Monday approved the plan to raise equity capital amounting to INR 27 billion in 2025-26 (Apr-Mar) through various modes like qualified institutional placement or follow-on public offer route, a move that can "definitely" help in lowering the government's stake to less than 75% by the end of the year, its Managing Director and Chief Executive Officer Ashwani Kumar said. "If the market conditions support, this is possible," Kumar said at a post-earnings press conference. 

 

At the end of March, the government held a 90.95% stake in the Kolkata-based lender. The government's stake in the bank has come down from 95.39% as at the end of December after the bank raised INR 20 billion in March.

 

The bank will raise the capital through the issue of 2.70 billion equity shares of face value INR 10, aggregating to INR 27 billion through various modes, including qualified institutional placement and follow-on public offer, in one or more tranches during FY26 subject to approval of the shareholders and other statutory approvals, the banks informed the exchanges on Monday. 

 

The government had in August 2024 allowed five public sector banks — UCO Bank, Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, and Punjab & Sind Bank — time till Aug. 1, 2026, to meet the public shareholding norms. As per the Securities Exchange Board of India's Securities Contract (Regulation) Rules, all listed companies, including public sector companies, must have a minimum public shareholding of 25%.

 

Results for the quarter ended March, announced earlier in the day, showed the bank's net profit rose 24% on year to INR 6.52 billion on account of a jump in interest income. However, a sharp rise in the lender's provision ate into its bottom line. 

 

Shares of the bank closed at INR 30.78 on the National Stock Exchange, up 1.1% from the previous close. The results were announced after market hours.

 

"At current prices, if we are able to raise money in this financial year, then our government holding will be less than 75% (by end of FY26)," Kumar said. According to the current market price, the bank will have to raise equity of over INR 58 billion to meet the public shareholding norm. If the bank issues the entire 2.70 billion equity shares, it will raise INR 81 billion at the current market price.

 

Detailing plans for FY26, Kumar said UCO Bank will join the Reserve Bank of India's retail central bank digital currency pilot in the current quarter. UCO's plan to join the retail central bank digital currency pilot is far behind its original timeline. Kumar had in November 2023 said the bank was in talks with the National Payments Corp. of India to take the proposal forward, as the bank had received approval from the RBI. 

 

The bank is aiming to invest over INR 10 billion in technology infrastructure in FY26, he said. In FY25, the bank spent INR 4.37 billion on information technology-related infrastructure, up 157%. 

 

On operations, Kumar said the bank will continue to focus on lending to housing, education and vehicle segments in FY26, with corporate sector lending estimated to grow at 12-13%, in line with the growth seen in FY25 as well. 

 

The chief executive also said the bank expects non-performing asset recovery to the tune of INR 22-25 billion in FY26. In the year ended March, total recoveries were to the tune of INR 44.27 billion, higher than the INR 30 billion guidance detailed earlier.  End

 

Reported by Priyasmita Dutta and Sachi Pandey

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.