UCO Bank seeks Rs 800 cr from Centre

Kolkata-based UCO Bank has sought Rs 800 crore capital from Centre to prevent capital adequacy ratio going below eight percent. "We have requested Rs 800 crore from government. Let's see how much we get," UCO Bank Executive Director S Chandrasekharan said here today on the sidelines of 71st foundation day of the bank.

He said the Finance Ministry has assured that they would not allow the bank's Tier-I capital to go below eight percent.

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The government has planned to infuse Rs 15,000 crore in the PSU banks as recapitalisation support. Chandrasekharan said the bank has already garnered Rs 1,000 crore worth capital by way of Tier-II bonds so far during this fiscal.

The bank is aiming 20 percent growth in total business this year, he said. In the third quarter, the bank registered total business growth of 17 percent.

"We are confident to cross a total business of Rs 3 lakh crore by March 2013," he said. Meanwhile, the bank is unlikely to revise its lending or deposit rates before the Reserve Bank of India's (RBI) review of monetary policy on January 29.

"There is still tightness in the liquidity. Hence, rates remain firm. Though we hope RBI will ease rates but we will wait for RBI's move. Chandrasekharan said the bank has been reducing its dependence on bulk deposits and focusing on mobilisation of low-cost deposits to keep its cost of funds under control.