UCO Bank to raise Rs 3,600 cr

UCO Bank would be raising Rs 3,600 crore in a phased manner over the next 12 months by way of issuing upper Tier II bonds and hybrid perpetual bonds.

"We would be raising Rs 3,000 crore through upper Tier II bonds and Rs 600 crore by way of hybrid perpetual bonds. We would be hitting the capital market within the next fortnight," said V Sridar, chairman and managing director.

The bank was likely to post around 19 per cent growth in total business at Rs 92,500 crore in 2005-06, Sridar added.

Total credit was expected to record a 34 per cent growth at Rs 38,000 crore while deposits were expected to post a 10.4 per cent growth at Rs 54,500 crore in 2005-06, Sridar said.

The bank today signed an MoU with Bajaj Allianz for personal accident cover to Kisan credit cardholders.

"We have selected Bajaj Allianz General Insurance to offer insurance cover to cardholders as they were able to lower the premium and also help in providing accurate MIS to administer the scheme and make it hassle-free," said Sridar.

In 2005-06, the bank had provided loan to 1.33 lakh farmers against a targeted figure of 1.15 lakh. The total disbursement was around Rs 2,375 crore, thereby recording a 30.78 per cent growth.

Atanu Singh Mukherjee, national coordinator, institutional relationship, Bajaj Allianz General said, "The company would be posting a 50 per cent growth in premium income. Gross written premium in 2004-05 was Rs 856 crore with the figure crossing Rs 1,000 crore as on January, 2006."