UCO Bank to raise upper tier II, hybrid capital of Rs 1100 cr

Kolkata, Jun 15 (UNI) UCO Bank will raise Rs 1100 crore of upper tier II and hybrid capital in the current year to meet its capital requirements, its Chairman and Managing Director V.Sridar said today.

'' We have already raised Rs 250 crore. Another Rs 350 crore will be raised very soon. In all we will raise Rs 1100 crore of upper tier II and hybrid capital this year, '' Sridar said in the sidelines of the Bank's third annual general meeting here.

'' There is no immediate requirement for tier I capital. The Bank has a capital adequacy ratio (CAR) of 11.12 per cent, '' he said.

Meanwhile, the management had prepared a proposal specifying the ideal capital structure for the Bank and it will be placed before the board on July 7 for approval, the CMD said without disclosing the details.

Following the Board's approval the proposals would be forwarded to the government and the Reserve Bank of India (RBI) for approval, Sridar said.

The Bank would introduce the pilot core banking project by June end and by year end core banking solution would be in place in 125 branches across the country, he said.

'' UCO Bank has already obtained the RBI's approval for opening a representative office in China. Now the Bank has applied to the Central Bank of China for approval, '' Sridar said.

'' The Bank has targetted a total business of Rs 1,11,000 crore with deposit of Rs 65,100 crore and advances of Rs 45,900 crore by the end of March 31, 2007, '' the CMD said.

Going forward the Bank is set to see a ''rough and tough'' year with the hardening of the interest rates, he said.

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