State-owned UCO Bank announced on Tuesday its plan to raise ₹2,000 crore through a Qualified Institutional Placement (QIP) during the current quarter. A few days earlier, Punjab & Sind Bank had announced to raise funds via QIP. The government has approved sale of stake in five public sector banks. These Banks will raise funds via QIP.
UCO Bank Managing Director and CEO Ashwani Kumar revealed that the government recently approved the QIP plan. Following this issuance, the Government of India’s stake in the bank, currently at 95.39% (as of December 2024), will decrease by 3%.
The government has extended the deadline for central public sector enterprises and public sector financial institutions to meet the MPS norms until August 2026. Of the 12 public sector banks, five, including UCO Bank, have yet to achieve the required public shareholding. The move aims to comply with the Securities and Exchange Board of India’s (SEBI) minimum public shareholding (MPS) norms, which require listed companies to maintain a public shareholding of at least 25%.
The bank has already appointed merchant bankers and legal advisers and initiated discussions with potential investors such as mutual funds. The QIP will be launched during the ongoing quarter when market conditions are favorable.
Strong Quarterly Performance
UCO Bank reported robust financial results for the third quarter ending December 2024:
- Net Profit: ₹639 crore, a 27% increase from ₹503 crore in the same quarter last year.
- Operating Profit: ₹1,586 crore, up from ₹1,119 crore in Q3 of 2023.
- Total Income: ₹7,406 crore, compared to ₹6,413 crore a year ago.
- Interest Income: ₹6,220 crore, up from ₹5,552 crore in Q3 2023.
- Net Interest Income (NII): ₹2,378 crore, a 20% increase from ₹1,988 crore in the previous year.
Click here to check NET Profit of All Banks in December 2024 Quarter