The Hindu Business Line : UCO Bank equity capital rejig takes effect

New Delhi, Jan. 1 The equity capital of UCO Bank has been restructured. The Government has given effect to the capital restructuring proposal involving conversion of Rs 250 crore out of the total equity capital of Rs 799.36 crore into Perpetual Non-Cumulative Preference Shares (PNCPS).

With this restructuring, UCO Bank’s capital stands reduced to Rs 549.36 crore, of which Government holding would be Rs 349.36 crore (63.59 per cent stake). Prior to the capital restructuring, Government had 74.98 per cent stake in the bank, amounting to Rs 599.36 crore.

UCO Bank is now proceeding to allot PNCPS for Rs 250 crore to the Centre. This allotment would be made out of the PNCPS of Rs 625 crore issuance approved by shareholders at an extraordinary general meeting held on March 12, 2008.

A Finance Ministry communique to the bank recently said that PNCPS would be serviced at an annual floating coupon benchmarked to repo rate plus spread of 100 basis points, which would be readjusted annually based on the prevailing repo rate on the relevant date.

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