UCO Bank and United Bank of India to receive Rs1,248 core in recapitalisation package

The government has decided to pump Rs1,248 crore into two public sector banks UCO Bank and United Bank of India towards recapitalisation, to shore up equity capital.

UCO Bank informed the BSE in a filing yesterday that the government had decided to infuse Rs940 crore into the Tier I capital of the bank by way of preferential allotment of the equity.

Another Kolkata-based lender, United Bank of India is to get Rs308 crore.

Meanwhile, Allahabad Bank and Chennai-based Indian Overseas Bank have called board meetings on 18 February and 19 February respectively to consider preferential allotment of equity shares to the government of India. The amount of capital infusion planned in the two banks, however, is not known.

The government notification to the effect was issued on Tuesday. The boards of the two banks are scheduled to meet on 19 February to consider capital infusion.

In a separate filing, United Bank of India said the board would consider among other things the reclassification of the authorised capital of the bank.