The Hindu Business Line : UCO Bank to hold 30% in insurance joint venture

The proposed joint venture, comprising a foreign partner and a domestic bank or corporate house and UCO Bank, may require an initial capital of about Rs 150 crore, according to Mr S. K. Goel, Chairman and Managing Director, UCO Bank.

“We will sign the memorandum of understanding by September, after which we will have to wait for regulatory approvals from the Reserve Bank of India and the Insurance Regulatory and Development Authority. We are hopeful of commencing operations within this financial year,” Mr Goel told newspersons at the bank’s sixth Annual General Meeting here on Friday.

The entry into general insurance business would help the bank garner a good fee-based income, he said.

UCO Bank, the CMD said, has received the shareholders’ approval to increase the authorised capital to Rs 3,000 crore (from Rs 1,500 crore at present).

Follow-on public issue

The bank has also received shareholders’ authorisation for a follow-on public issue, which would bring down the government’s stake to 52 per cent (63.59 per cent as on March 31).

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