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Sunday , January 6 , 2013
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Uco seeks Rs 800cr infusion

Calcutta, Jan. 5: City-based public lender Uco Bank has sought about Rs 800 crore from the Centre to bolster its tier-1 capital.

“The central government has allotted about Rs 15,000 crore for capital infusion across various banks and they will have to ensure that it (tier-1 capital) does not go below 8 per cent. We have made an appeal for about Rs 800 crore,” S. Chandrasekharan, executive director of Uco Bank, said at the 71st foundation day of the bank today.

The bank has so far garnered Rs 1,000 crore via bonds for tier-II capital this fiscal. Its capital adequacy was 12.27 per cent at the end of September 2012 under the Basel II norms.

Finance minister P. Chidambaram had earlier indicated that North Block was looking to infuse Rs 15,000 crore before March 2013.

Chandrasekharan also said the bank was looking to reduce its dependence on bulk deposits. He hoped the bank would be able to reduce the share of bulk deposits to 15 per cent.

He pointed out that the bank witnessed an 18.5 per cent rise in deposits and a 14.7 per cent growth in advances during the one-year period ended December 2012. The credit rise was mainly on account of the growing demand in the retail segment.

Chandrasekharan said the bank had not witnessed any significant deterioration in its asset quality in the October-December quarter.

In the previous quarter, the bank saw its credit quality deteriorate as its loans to a biotechnology firm had turned non-performing.

He also said the bank was looking to cross a total business of Rs 3 lakh crore by March 2013. The bank’s total business was Rs 2,71,508 crore in the last fiscal.

Rate rejig call

Chandrasekharan said the bank was unlikely to revise its lending and deposit rates before the third-quarter monetary policy of the RBI later this month. “There is tightness in liquidity and so banks are not reducing rates. We expect the RBI to ease rates. Once they lower their rates, we can take a call,” he said.