UCO Bank approaches Life Insurance Corporation of India for equity infusion

Kolkata: UCO Bank has approached Life Insurance Corporation of India (LIC) for equity infusion, a top official said on Thursday.

The state-owned company is looking to raise Rs 4,500- 5,000 crore in the current fiscal.

"Yes, we approached LIC for equity infusion," UCO Bank Managing Director & CEO A K Goel said here.

The lender has sought in excess of Rs 1,000 crore as equity from the insurance major, sources said.

LIC already holds about 4 per cent stake in UCO Bank.

In the quarter to June, the bank had raised Tier-II capital aggregating to Rs 500 crore in Basel III-compliant Tier-II bonds to LIC.

During FY14-FY19, the government and LIC together pumped in Rs 3 trillion in public sector banks, according to a report by India Rating.

The government had recently infused Rs 3,330 crore into the bank to improve capital adequacy.

Meanwhile, Goel said it will take a call about passing on the benefit of RBI's repo rate reduction by 35 basis points.

He said the net NPA will be down to 6 per cent by March, and the provision coverage of bad debt is 77 per cent.

Net NPAs of the lender were Rs 8,781.97 crore at the end of the first quarter as against Rs 12,558 crore in the corresponding period a year ago.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in