Plan to do a QIP of Rs 500 crore this quarter: UCO Bank

Government has announced additional Rs 80,000 crore capital infusion via recap bonds for public sector banks. Sapna Das of CNBC-TV18 caught up with RK Takkar, CMD of UCO Bank and asked about how this additional capital will help the bank and the sector as a whole.

Capital infusion by the government, whether direct or via the bonds, will meet our requirements initially and further if we get some additional capital, that will be used for our growth, he said.

He hopes to come out of prompt corrective action (PCA) in 12-15 months, he added.

We have a requirement of around Rs 4,000 crore for the current financial year and we have got Rs 1,375 crore in December. We have plans to go to the capital market through qualified institutional placement (QIP), around Rs 500 crore should be the amount, said Takkar.

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