UCO Bank's Strategic Rs 2,000 Crore QIP Move

UCO Bank plans to raise Rs 2,000 crore through Qualified Institutional Placement (QIP) to meet Sebi's minimum public shareholding norms. The government's shareholding will reduce by 3%. The bank reports a 27% increase in net profit for Q3 2024, driven by interest and non-interest income.

State-owned UCO Bank has announced its intention to mobilize Rs 2,000 crore through a Qualified Institutional Placement (QIP) in the current quarter, aligning with Sebi's minimum public shareholding norms.

UCO Bank's Managing Director and CEO, Ashwani Kumar, stated that the government recently approved the QIP plan, and the bank is actively engaging investors. The government, holding a 95.39% stake as of December 2024, will see its stake reduced by 3% post-QIP.

With a 27% increase in net profit to Rs 639 crore in Q3 2024, UCO Bank attributes growth to improved interest and non-interest income, alongside a rise in total income to Rs 7,406 crore.

(With inputs from agencies.)