State-owned United Bank of India has raised Rs 300 crore by selling shares on preferential basis to Life Insurance Corporation of India (LIC). The bank has received Rs 299.99 crore from LIC and completed the preferential allotment of 8.45 crore shares.
The bank issued shares of face value of Rs 10 at a price of Rs 35.50 per share. Following this, the government’s share in the bank will come down to 82 per cent from the existing 89.47 per cent. Currently, LIC owns 2.72 per cent stake in United Bank of India.
The bank reported over 15- fold jump in its net profit at Rs 469.37 crore for the quarter ended March 31, 2014 as compared to Rs 31.18 crore for the same quarter in the previous year. Total income of the bank increased by 14.39% at Rs 3073.78 crore for quarter under review as compared to Rs 2687.18 crore for the quarter ended March 31, 2013.
