UCO Bank to consider issue of tier II bonds worth Rs 500 crore; key things

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Published: October 21, 2019 6:24:15 PM

UCO Bank on Monday said that its board will consider the issue of tier-II bonds worth Rs 500 crore.

emergency fund, fund for bad days, इमरजेंसी फंड, mutual fund, liquid fund, short duration bond, PPF, FD, RD, savings, invest in mutual fundIn the first quarter of the ongoing fiscal, UCO Bank’s net loss narrowed owing to higher net interest income.

UCO Bank on Monday said that its board will consider the issue of tier-II bonds worth Rs 500 crore. “We inform that Board of Directors of the Bank will consider the issue of Basel III compliant Tier-2 Bonds aggregating to Rs.500 crore at its meeting scheduled to be held on 24 October 2019,” UCO Bank said in an exchange filing. UCO Bank shares were trading at Rs 11.85, up 0.10 points, or 0.85 per cent on BSE.

In the first quarter of the ongoing fiscal, UCO Bank’s net loss narrowed owing to higher net interest income. The bank recorded a net loss of Rs 601.45 crore for the three months ended 30 June compared to the loss of Rs 633.88 crore in the year-ago period. Net interest income rose 8.71 per cent to  Rs 1,334.97 crore, from Rs 1,228.02 crore in the corresponding period last year.

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Other income, which includes core fee income, rose 0.16 per cent to Rs 630.08 crore in the first quarter, from Rs 629.08 crore a year ago. The provisions during the quarter increased 1.21 per cent to Rs 1,802.89 crore compared to Rs 1,781.28 crore in the year-ago quarter. During the previous January-March quarter, the bank had set aside Rs 2242.58 crore in provisions.

Meanwhile, the services in state-owned banks may be affected as some of the employees unions have decided to observe nationwide strike on Tuesday to protest against bank mergers and fall in deposit rates. However, officers and private sector banks are not part of the strike call given by the All India Bank Employees Association (AIBEA) and Bank Employees Federation of India (BEFI). “The membership of our bank employees in unions participating in strike is very few, so the impact of strike on Banks operation will be minimal,” SBI said in an exchange filing last week.

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