UCO Bank gets nod to raise equity capital by issuing up to 1 bn shares

State-owned UCO Bank has received shareholders' approval to raise equity capital by way of issuing up to 100 crore shares.

The bank would raise equity capital at appropriate time in the current fiscal to support growth, according to a regulatory filing on Tuesday.

The shareholders have approved "equity capital raising plan of the bank during the financial year FY23 through issue of up to 100,00,00,000 equity shares of Rs 10 each by way of various capital raising options at an appropriate time and premium," the bank said.

The filing mentioned about the minutes of the bank's annual general meeting held on June 24.

The meeting, convened under the chairmanship of the bank's MD and CEO Soma Sankara Prasad, also discussed issues about cyber fraud, door step banking and non-declaration of dividend in FY22.

As regard to reason for non-declaration of dividend, the Chairman stated the bank came out of the Prompt Corrective Action (PCA) framework on September 8, as per the filing.

"With an intention to conserve capital to sustain uncertain adverse situation, bank has not declared dividend for the FY2021-22 which was also the view of Reserve Bank of India," it said.

The Chairman also informed the shareholders that the bank is adequately capitalised at present.

Shares of UCO Bank closed 0.35 per cent down at Rs 11.35 apiece on BSE.