After capital restructuring allowed by the Centre, Kolkata-based state-run lender, UCO Bank, is all set to go for a follow-on public offer.
However, the bank is waiting for the right moment to access the market.
Also, the bank has already zeroed in on a foreign partner for setting up a joint venture to sell third party.
Speaking with FE, SK Goel, chairman and managing director, UCO bank said, “We have a headroom for raising capital worth Rs 100 crore and we will go for it when the market is good.”
On completion of capital restructuring on December 22 valued at Rs 250 crore, the bank’s capital adequacy ratio stands at 11.6%.
Goel didn’t disclose the name of the foreign partner for its proposed JV until the MoU was signed.
The number of branches, which are Basel-II compliant on March 31, 2008, has already crossed the 2000 mark.
Currently, the bank holds licences for the opening of 95 more branches, which will be done by the end of the fiscal.
Similarly, the bank was planning to open 135 more ATMs, in addition to its existing ATMs numbering 340, by the fiscal end, said Goel.
On SME loans, Goel said that bank has exposure to the sector to the extent of 20% of its total portfolio.
The bank’s exposure to home loans was 14% currently and is likely to go up to 15% by the fiscal end, said Goel.