Union Bank expects Rs 1,000 crore capital infusion this fiscal

10 Dec 2012 Evaluate

State-run, Union Bank of India (UBI) has applied for and is expecting about Rs 950-1000 crore as capital infusion during the current fiscal which is part of recapitalization plan of the government. With this infusion, the TIER I capital of the bank will go up, which was 8.17% as on September 2012. The capital infusion will help the bank to enhance lending to productive sectors. UBI has got capital support of Rs 280 crore in the last fiscal.

In the current fiscal, the government has made budget provision of Rs 15,000 crore for recapitalization of public sector banks. The government pumped Rs 20,157 crore in public sector banks in 2010-11, in order to maintain TIER I capital at 8% and increase the government equity in some banks to 58%.

The bank has posted a rise of 57.31% in its net profit at Rs 554.56 crore for the quarter ended September 30, 2012 as compared to Rs 352.52 crore for the same quarter in the previous year. Total income has increased by 18.61% at Rs 6655.66 crore for quarter under review as compared to Rs 5611.37 crore for the quarter ended September 30, 2011.

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