UCO Bank to lower home loan interest further

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Kolkata, Mar 12 (UNI) With a view to posting a profit of Rs 380 crore by this fiscal, UCO Bank will soon cut down its home loan interest rate by 25 basis points further.

UCO Bank Chairman&Managing Director S K Geol today said the Bank, which had already lowered the interest rate by 25 basis points on home loan this month, was expected to cut further at the same ratio provided the Bank's Board members approved the proposal.

The Board members will meet on March 15.

Announcing the elections of two new shareholder Directors to the Bank's Board - Suresh Chand Gupta and Ramniwas Jain - at an extraordinary general meeting of the Bank's shreholers today, Mr Goel said it would also raise Rs 625 crore through the Perpetual Non -Cumulative Preference Shares (PNCPS).

Since the RBI had already issued guidelines for Banks on raising capital through PNCPS for immediate requirement following asset expansion that had already taken place in the Bank, Mr Goel said the Bank is expected to raise Rs 325 crore by this month-end as the shareholders approved the option of the PNCPS to augment Tier-I capital to meet the requirements under Basel II.

The remaining Rs 300 crore of the PNCPS was expected from the government, Mr Goel said.

Of the Rs 380 crore target profit for this fiscal, the Bank had already crossed Rs 326 crore and was having good business to make the bull's eye, he added.

Regarding loan waiver for farmers as Finance Minister P Chidambaram announced during the General Budget last month, the UCO Bank was expected to bear some Rs 900 crore under the loan waiver schemes up to December 31, 2007, Mr Goel said.

UNI PC SJC/src1859

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