UCO Bank okays preference shares issue to govt for Rs 2,600 cr capital infusion

State-owned UCO Bank on Wednesday said its board has approved allotment of preference shares to the government for infusing Rs 2,600 crore capital.

''The board of directors of the bank, this day i.e. 7th April 2021, approved the proposal for the issue of equity shares on preferential basis to the government of India against capital infusion of Rs 2,600 crore,'' UCO Bank said in a regulatory filing.

The lender said an extraordinary general meeting of the shareholders of UCO Bank will be held on May 7, 2021 (through video conference) for seeking approval from them for the proposal.

In a separate filing, Chennai-based state-owned Indian Overseas Bank said its board of directors will take up the proposal for allotment of equity shares on a preferential basis to the government for capital infusion of Rs 4,100 crore on April 12.

UCO Bank scrip closed at Rs 11.37 apiece on BSE, up 1.70 per cent from the previous close. Indian Overseas Bank stock ended up 0.62 per cent at Rs 16.15.