SME TImes News Bureau | 04 Jul, 2009
State-run UCO Bank will invest Rs.45 crore in its proposed general insurance company, a top bank official said in Kolkata on Friday.

"We will pick up a 30-percent stake in the general insurance venture, which will have a capital base of Rs.150 crore," the bank's chairman and managing director S.K. Goel said at a press conference.

Goel refused to name the other partners but said a foreign entity would pick up a 26 percent stake.

The bank also obtained shareholders' approval Friday for a follow-on public offer (FPO) to raise Rs.136 crore.

"We are eyeing a price of not less than Rs.50 a share for our FPO, which will probably be launched during the September-December period," Goel said.

The FPO will bring down the government's stake in the bank to 52 percent from 64 percent currently.