United Bank of India receives Rs 608 cr government infusion

By: | Published: September 23, 2016 4:12 PM

State-run United Bank of India (UBI) has received Rs 608 crore from the central government through preferential allotment of equity shares, the bank disclosed on Friday.

United Bank of IndiaThe UBI received the funding from the Centre in line with an announcement made earlier by the government to make capital infusion of Rs 22,915 crore towards recapitalisation of 13 public sector banks during 2016-17. (PTI)

State-run United Bank of India (UBI) has received Rs 608 crore from the central government through preferential allotment of equity shares, the bank disclosed on Friday.

The UBI received the funding from the Centre in line with an announcement made earlier by the government to make capital infusion of Rs 22,915 crore towards recapitalisation of 13 public sector banks during 2016-17.

“…the Bank has received Rs 608 crore from the central government towards preferential allotment of 26,74,87,901 equity shares of Rs 10/- each at a price of Rs 22.73 per share…” the lender said in a filing to the Bombay Stock Exchange (BSE).

As part of the recapitalisation plan, the Union Ministry of Finance has earmarked a total of Rs 810-crore fund for the city-based lender by way of preferential allotment of equity shares.

Earlier, the bank had said that the ministry would infuse Rs 608 crore, 75 per cent of the capital, with immediate effect, while the remaining 25 per cent would be infused based on bank’s performance by the year-end.

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