UCO Bank has sought Rs.800 crore capital from the Centre to prevent capital adequacy ratio going below 8 per cent.
“We have requested Rs.800 crore from the government. Let’s see how much we get,” UCO Bank Executive Director S. Chandrasekharan said here on Saturday on the sidelines of 71st foundation day of the bank.
He said the Finance Ministry had assured that it would not allow the bank’s Tier-I capital to go below 8 per cent.
The government has planned to infuse Rs.15,000 crore in public sector banks as recapitalisation support.
Mr. Chandrasekharan said the bank had already garnered Rs.1,000 crore worth capital by way of Tier-II bonds so far during this fiscal.
In the third quarter, the bank registered a total business growth of 17 per cent. “We are confident to cross a total business of Rs.3 lakh crore by March 2013,” he said.
Meanwhile, the bank is unlikely to revise its lending or deposit rates before the Reserve Bank of India’s (RBI) review of monetary policy on January 29. “There is still tightness in liquidity. Hence, rates remain firm. Though we hope the RBI will ease rates but we will wait for RBI’s move”.
Mr. Chandrasekharan said the bank had been reducing its dependence on bulk deposits and focusing on mobilisation of low-cost deposits to keep its cost of funds under control.
