UBI gets Rs.300 crore infusion from government

Calcutta News.Net
Wednesday 31st March, 2010

City-based United Bank of India has informed the Bombay Stock Exchange that it has got capital infusion of Rs.300 crore from the central government.

'This capital infusion is a part of the government's initial sanction to the proposal to infuse a total of Rs.800 crore in the bank through PNCPS (Perpetual Non-Cumulative Preference Shares). The first instalment of Rs.250 crore was received on March 31, 2009,' the bank said.

The amount will be a part of the tier I capital of the bank and carry annual floating coupon to be benchmarked to the repo rate with a spread of 100 basis points and readjusted annually based on the prevailing repo rate on the relevant date, it said.

Have your say on this story