Modifying its earlier approval of 18th April, 2006, the Union Cabinet today approved the restructuring of the paid-up capital of the United Bank of India, a nationalized bank, on the following lines –
To reduce the paid-up equity capital of the United Bank of India to Rs. 266.43 crore, Government will take a return of excess paid-up capital of Rs. 1266 crore and simultaneously will infuse this amount in the ‘Capital Reserves’ of the Bank. Additionally, Government will subscribe a sum of around Rs.800 crore ( Rupees Eight hundred crore) in innovative Tier I capital instruments of the United Bank of India, in two tranches of around Rs. 250 crore in 2008-09 and around Rs. 550 crore in 2009-10.
The restructuring of the paid-up capital would improve key financial indicators of the Bank and additional capital funds would enable the Bank extend more credit to the productive sectors of the economy.
To reduce the paid-up equity capital of the United Bank of India to Rs. 266.43 crore, Government will take a return of excess paid-up capital of Rs. 1266 crore and simultaneously will infuse this amount in the ‘Capital Reserves’ of the Bank. Additionally, Government will subscribe a sum of around Rs.800 crore ( Rupees Eight hundred crore) in innovative Tier I capital instruments of the United Bank of India, in two tranches of around Rs. 250 crore in 2008-09 and around Rs. 550 crore in 2009-10.
The restructuring of the paid-up capital would improve key financial indicators of the Bank and additional capital funds would enable the Bank extend more credit to the productive sectors of the economy.
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