Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
July 25, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report July 25, 2001 |
Feedback
|
|
|
UTI Bank likely to push through 26% placementBS Banking Bureau UTI Bank is going ahead with its proposed 26 per cent equity divestment even as its parent, the Unit Trust of India, is reeling under the US-64 scheme freeze ruckus. The bank is hopeful of concluding the deal, which involves part-placement of the parent's stake with a clutch of private equity funds over the next few weeks. UTI's holding in the bank currently stands at 60.65 per cent. UTI Bank chairman and managing director, P J Nayak, said: "Our preferential allotment plan is definitely on. The due-diligence is being completed. The question of shelving the placement does not arise." The bank, which has been on an aggressive growth path specially in the retail sector, has been mulling an increase in its equity capital by one-third from Rs 1.32 billion to around Rs 1.75 billion through private placement. Sources said the bank is looking at only a preferential allotment to equity investors and is not looking at bringing in a strategic investor. The front-runners to the issue are the Commonwealth Development Corporation, and the Dutch-Belgian group Fortis along with a clutch of three to four other investors. The private placement will take care of two pressing issues before the bank -- an increase capital adequacy ratio, which has fallen to 7.93 per cent against the prescribed 9 per cent, and bringing down UTI's stake in the bank to around 40 per cent. According to sources, unlike with other private banks, the Reserve Bank of India does not seem to have much problems with UTI Bank's low CAR owing to the impending placement. The other institutions holding stake in the bank include the Life Insurance Corporation with 5.97 per cent stake and the General Insurance Corporation with a 5.69 per cent pie. Meanwhile, the UTI Bank share closed at Rs 28.9 on the Bombay Stock Exchange today, a decline of 2.03 per cent over Monday. Powered by YOU MAY ALSO WANT TO READ:
|
||||
