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UCO Bank and Vijaya Bank to raise about Rs 412 crore of capital by issuing fresh equities to LIC

24 Feb 2012 Evaluate

Vijaya Bank and UCO Bank, the two state-owned lenders have proposed to raise about Rs 412 crore of capital by issuing fresh equities to Life Insurance Corporation of India (LIC). Vijaya Bank has proposed to allot shares worth Rs 147 crore to LIC on preferential basis. Meanwhile, UCO’s board of directors have approved the proposal for issue of 3.13 crore shares to LIC on preferential basis. At the prevailing market price of Rs 84.80 (closing price as on February 23, 2012), the bank would raise approximately Rs 265 crore by selling stake to the insurer. In 2010-11, the government provided capital support to the tune of Rs 20,157 crore to public sector banks.

Vijaya Bank reported a fall of 18.14% in its Q3 net profit at 124.27 crore in the third quarter ended December 31, 2011 compared with Rs 151.80 crore in the year-ago period. However, the total income rose by 37.21% to Rs 2173.92 crore in the quarter under review against Rs 1584.40 crore during the corresponding quarter of the earlier fiscal.

Peers
Company Name CMP
SBI 1080.35
PNB 114.50
Canara Bank 142.35
Bank Of Baroda 280.00
Union Bank Of India 188.90
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