UCO Bank gets shareholders' nod for preference issue to govt, offsetting accumulated losses
The decisions were taken at the extraordinary general meeting of the shareholders on Friday (May 7), UCO Bank said in a regulatory filing.
May 07, 2021 / 10:00 PM IST
State-run UCO Bank on Friday said its shareholders have approved issuance of preferential shares to the government for Rs 2,600 crore capital infusion. The shareholders have also approved adjusting the bank's accumulated losses by March 2020 against the balance in the share premium account.
The decisions were taken at the extraordinary general meeting of the shareholders on Friday (May 7), UCO Bank said in a regulatory filing. These proposals have been considered and approved by the shareholders through remote e-voting and e-voting during the meeting, it added.
The shareholders have approved issuance of 203,76,17,554 equity shares at an issue price of Rs 12.76 per equity share aggregating to Rs 2,600 crore on preferential basis to Government of India, it said in the filing. Also, the shareholders approved "appropriation of bank's accumulated losses of Rs 12,537.40 crore as at March 31, 2020 by utilising the balance standing to the credit of share premium account of the bank as on date to set off and take the same into account during current financial year 2021-22," it said.
Share premium balance is a reserve that can only be used for defined purposes. The account reflects the difference between the face value and subscription price of shares. Both the proposals were passed with 99.99 per cent voting by shareholders, as per the filing.
UCO Bank stock closed 0.44 per cent down at Rs 11.29 apiece on BSE.