UCO Bank to issue preference shares to govt for Rs 1,375 crore

New Delhi: Public sector lender UCO Bank on Wednesday said its Board has approved a proposal to issue equity shares on preferential basis to the government for capital infusion of Rs 1,375 crore.

"We have received the approval of Board of Directors...for the proposal to issue equity shares on preferential basis to Government of India against capital contribution of Rs 1,375 crore subject to necessary approvals," UCO Bank said in a BSE filing.

The government had on October 24 unveiled a Rs 2.11 lakh crore two-year road map for strengthening NPA-hit public sector banks, which includes re-capitalisation bonds, budgetary support and equity dilution.

Stock of the bank was trading 1.15 per cent higher at Rs 30.70 apiece on BSE.