UCO Bank rises as board approves preferential allotment to government

NEW DELHI: Shares of UCO Bank advanced over 1 per cent in Wednesday's trade after the board of directors of the state-run lender approved a proposal regarding issuing of equity shares to government on a preferential basis. This will help the bank raise Rs1,375 crore, subject to necessary approval.

Following the announcement, the stock rose 1.65 per cent to 30.85 on BSE, eventually closing at Rs 30.60, up 0.82 per cent.

In October the state-run lender had allotted 30,71,58,119 equity shares of Rs 10 each to government at an issue price of Rs 37.44 per share on preferential basis.


UCO Bank has been reporting losses of late. The bank had reported a net loss of Rs 622.56 crore in the September quarter, compared with a net loss of Rs 384.83 crore during the same quarter last year.

Total Operating Income for the lender declined 20.40 per cent YoY to Rs 3,446.22 crore in the second quarter from Rs 4,329.45 crore in the year-ago quarter.