Re-structuring the paid-up capital of United Bank of
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
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.
