UCO Bank to right off Rs. 12,537 crore loss via share premium account balance

UCO Bank to right off Rs. 12,537 crore loss via share premium account balance:

UCO Bank: It is also known as United Commercial Bank established in 1943 in Kolkata. It is one of the largest commercial banks in India that works under the Government of India. The bank has almost 4,000 plus service units across 49 zonal offices in India. The bank provides services like consumer banking, corporate banking, insurance, mortgage loans, private banking, and wealth management across India. Whereas the bank also has two overseas branches in Singapore and Hong Kong. The present chief executive officer (CEO) & managing director (MD) of the bank is Atul Kumar Goel.

Meanwhile, on Saturday, the state-owned bank decided to set off its losses of Rs. 12,537 crores via the share premium account. The process will be completed during the financial year 2021-22 respectively. The bank believes that it is the best option to present a true and fair view of the bank’s financial position.

Moreover, the state-owned bank will conduct an extra general meeting on May 7th with the shareholder to seek approvals.

Whereas the bank’s equity capital structure and shareholding pattern after the share premium account will remain unchanged. The book value of the shares will also remain unchanged, said the bank in the exchange filing.

On the other side, the share premium balance is a reserve, which can be used only for the defined purposes of the company. A share premium account reflects the difference between the face value of shares and the subscription price of the shares.

UCO Bank

While the state-owned bank has a capital of Rs. 15,000 crores and paid-up equity capital of Rs. 9,918.34 crores. In that, the government holds almost 94.44% stakes in the bank. Besides, the bank also decided to raise funds of Rs. 2,600 crores from the government by issuing preference shares.

However, the shares of the UCO Bank reported a bullish trend in the stock market. It gained 0.70 points with a 6.19% increase and reached 12.00 INR. While in BSE, the bank gained 0.62 points with a 5.48% increase and reached 11.94 INR.

Stock Market on April 9th:

On Friday, both Sensex and Nifty reported a bearish trend in the stock market after bullish reports in the last session of the market. The Sensex is trading below 49,600 levels and nifty trading below 14,900 levels in the stock market. The Sensex lost 154.89 points with a 0.31% decrease and reached 49,591.32 levels. While the nifty lost 38.95 points with a 0.26% decrease and reached 14,834.85 levels.

On the other side, the number of coronavirus cases in India on Saturday, April 10th reached 1,32,05,926 with almost 1,68,436 deaths.

In the border markets, the S&P BSE Small-Cap index reported a bullish trend in the stock market on Friday. It gained 147.28 points with a 0.69% increase and reached 21,596.85 levels. But, the S&P BSE Midcap lost 15.64 points with a 0.075% decrease and reached a 20,762.17 level. While the Nifty Bank lost 334.80 points with a 1.02% decrease and reached 32,448.05 level.

Top Gainers on April 9th: Cipla, Sun Pharma, HUL, Tech Mahindra, and Wipro are the top gainers in today’s stock market.

Top Losers on April 9th: Bajaj Finance, UPL, NTPC, UltraTech Cement, and Tata Steel are the top losers in today’s stock market.

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