UNITED BANK EXPECTS RS 308 CR CAPITAL INFUSION BY MARCH END

United Bank of India said it expects the government to infuse a capital of Rs 308 crore by the end of this month.

“We hope Rs 308 crore capital infusion by the government by the end of March,” United Bank of India Chairman and Managing Director, Mr Bhaskar Sen said.

Asked about further capital raising plan, Mr Sen said, the bank is quite comfortable at the moment.

“There is a headroom and bank would take a call on follow-on public offer (FPO) by the end of next financial year (2011-12),” he said.

The Kolkata based bank came out with initial public offer (IPO) last year which was oversubscribed by 33 times.

Post-IPO, the government holding in the bank came down to about 84 per cent, against earlier level of 100 per cent.

Capital infusion into the bank will take place by way of preferential allotment of the equity. It is expected to raise the government’s holding in the bank.

The extraordinary general body meeting held on March 19 has already approved the proposal.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article1546700.ece