UCO Bank falls 3.4% on higher provisioning

KOLKATA: UCO Bank said it will raise Rs 400 crore from LIC by selling 6.08 crore shares on a preferential basis. Post funds infusion, LIC’s shareholding in UCO is estimated to rise to around 14% from the current 8.69% level.

The UCO board on Thursday approved the proposal to issue 6.08 crore shares of Rs 10 each to LIC at a price to be determined in accordance with Sebi regulation, the bank said.

The bank reported a 3.4% fall in net profit for the third quarter to December 31, 2014, at Rs 303.6 crore against Rs 314.5 crore in the year-ago period on higher provisions. Provision for the quarter under review was Rs 907.5 crore compared with Rs 812 crore a year ago.

Its net interest income fell 9% atRs 1,420.6 crore against Rs 1,566 crore. Other income, however, showed a massive 424% growth at Rs 659.8 crore. Operating profit grew 25% at Rs 1,425.13 crore in the quarter ended December 2014.