UCO Bank expects govt to infuse Rs 200-300cr by March

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UCO Bank expects govt to infuse Rs 200-300cr by March

State-owned Uco Bank expects the government to infuse Rs 200-300 crore by March to help the lender meet 8% Tier-I capital requirement.

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State-owned Uco Bank expects the government to infuse Rs 200-300 crore by March to help the lender meet 8% Tier-I capital requirement. "The exact amount is not yet known but we are expecting anywhere between Rs 200 and Rs 300 crore by March to meet the 8% tier-I capital," Uco Bank Chairman and Managing Director Arun Kaul said today.

The bank's capital in December slipped to 7.79%. The capital adequacy ratio, or CAR (as per Basel II norms), during the October-December quarter was 12.33%, down from 13.02% in the same period last fiscal, he said.

Uco bank also received capital infusion by the government in 2010-11. The CRR cut by Reserve Bank of India will release some Rs 600 crore for the bank, he added.

Speaking about the change in interest rates, Kaul said there was no scope unless cost of funds reduces. "In the December quarter, cost of funds jumped by 180 basis points while recovery was just to the tune of 145 points," he said.