Govt. approves capital restructuring of UBI

March 30th, 2009 - 8:29 pm ICT by ANI  

New Delhi, Mar 30 (ANI): The Union Cabinet today approved the restructuring of the state-owned United Bank of India’s capital, which includes reduction in paid-up equity by over 80 per cent to improve its financial parameters.

Besides, the government will infuse a sum of Rs 800 crore into the bank to enable it to provide more capital to productive sectors.

Talking to reporters here, Home Minister P Chidambaram said, “The paid-up equity capital of the bank will be reduced to Rs 266.43 crore.”

“The government will take back excess paid-up capital of Rs 1,266 crore and simultaneously will infuse this amount in the capital reserves of the bank,” he added.

Earlier in 2006, the Cabinet allowed United Bank to write off its accumulated losses of Rs 278.44 crore against the capital of Rs 1,810.87 crore. (ANI)

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