UBI to raise Rs.3.1 bn via preferential allotmentMarch 19th, 2012 - 8:44 pm ICT by IANS
Kolkata, March 19 (IANS) Public sector United Bank of India (UBI) Monday said it is expecting to raise Rs.3.1 billion by this month-end issuing equity shares on a preferential basis to the Union Government and the Life Insurance Corporation (LIC).
“The bank is expecting Rs.178 crore capital infusion from the government within the current financial year,” Chairman and Managing Director Bhaskar Sen told reporters on the sidelines of a programme organised by the Bengal National Chamber of Commerce and Industry (BNCCI) here.
Sen, however, said the bank was yet to receive any final communication regarding the capital infusion.
He said LIC will also invest about Rs.1.32 billion to increase its stake in the bank.
“We have got an indication that the LIC will invest Rs.132 crore. We are expecting that it will take place by the end of this fiscal. Then its stake in our bank will rise to 4.5 percent from the current 0.8 percent,” Sen said.
The bank’s board of directors has recently proposed to issue equity shares on preferential basis to LIC and the central government to raise the capital.
The bank has called an Extraordinary General Meeting (EGM) March 27 to seek shareholders’ approval on the proposal.
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