UCO Bank puts FPO plans on hold: Sources

UCO Bank BSE | NSE 09/02/12 Are Mutual Funds betting on UCO Bank?

Government owned UCO Bank has put follow-on public offering (FPO) plans on hold, reports CNBC-TV18 quoting sources. The bank was looking to raise nearly Rs 400 crore via FPO as against issue of 6 crore shares.

It is learnt that the bank is awaiting communication from government on capital infusion as well as appointments of chairman, manging director and executive director. The bank has been operating without any chief for the last two months. There were talks on appointing Arun Kaul to head the bank. Currently Kaul is ED of Central Bank. However the governement is yet to clarify on that too.

Sources say, the bank will revive FPO plans after government's clarity on capital infusion and appointment of a CMD.

Earlier UCO Bank had requested government for Rs 1300 crore capital in early FY10 and has received Rs 373 crore tier I capital from govt in July 2010.