UCO Bank to enter general insurance business

July 3rd, 2009 - 9:09 pm ICT by IANS  

Kolkata, July 3 (IANS) State-run UCO Bank will invest Rs.45 crore in its proposed general insurance company, a top bank official said here Friday.
“We will pick up a 30-percent stake in the general insurance venture, which will have a capital base of Rs.150 crore,” the bank’s chairman and managing director S.K. Goel said at a press conference.

Goel refused to name the other partners but said a foreign entity would pick up a 26 percent stake.

The bank also obtained shareholders’ approval Friday for a follow-on public offer (FPO) to raise Rs.136 crore.

“We are eyeing a price of not less than Rs.50 a share for our FPO, which will probably be launched during the September-December period,” Goel said.

The FPO will bring down the government’s stake in the bank to 52 percent from 64 percent currently.

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