Uco Bank follow-on offer in 45 days

MUMBAI/KOLKATA: Uco Bank has posted a net profit at Rs 132 crore for the July-September quarter as against Rs 100 crore during the same period the last fiscal.

“The conversion of some low-yielding assets to high-yielding ones led to increased profits,” chairman and managing director S K Goel said, adding the bank recorded a good growth in other income also as it sold more third-party financial products.

Uco Bank, which had earlier announced plans to raise Rs 200 crore through sale of shares, plans to hit the market with the share issue in the next 30-45 days subject to obtaining necessary approvals, he said. 

“The proposal has been sent to the cabinet for approval,” he said. The government’s stake would fall to 54% after the follow-on public offer from the present 76%, he said.

The bank’s first-half profit rose 50.05% to Rs 243.40 crore from Rs 162.21 crore in the corresponding period last fiscal. Its total business grew 20.07% to Rs 1.17 lakh crore (Rs 98,272 crore). Its operating profit improved by 7.25% to Rs 429 crore.