UCO Bank plans to set off accumulated losses of Rs 12,537 crore
State-owned Uco Bank has proposed to set off its accumulated losses of over Rs 12,537 crore by utilising the balance in the share premium account and has convened an EGM next month to seek shareholders’ approval.
A share premium account reflects the difference between the par/face value of shares and the subscription price of the shares. It is an additional paid-in capital, which can also be termed as paid-in capital in excess of par value.
It is a reserve that cannot be distributed, however, can be used for the defined purposes.
The bank will also seek the approval of the shareholders for issuing preference shares to the government for capital infusion in the next EGM. The extraordinary general meeting (EGM) will be held on Friday, May 7, 2021, through video conferencing.
Uco Bank said it will seek the consent of the shareholders to set off its accumulated loss of over Rs 12,537.39 crore as on March 31, 2020, by utilising the balance standing to the credit of share premium account as on date and take the same into account during the current fiscal.