UCO Bank to increase deposit, lending rates by 0.5%

India’s leading Public sector lender, UCO Bank has made announcement that it will increase both lending and short-term deposit rates by up to 50 basis points in the next few days.

Commenting on the hike, Mr. S K Goel, UCO Bank Chairman and Managing Director said, “Short-term deposit rates for up to six months will go up by 50 basis points.”

With this announcement, the bank has also decided to do slight adjustment in the non-priority sector lending rates.

These would include housing loan above Rs 30 lakh, corporate loans etc.

Further, the bank is planning to raise about Rs 825 crore from the market to fund its business growth.

"We are looking to raise Rs 325 crore through perpetual non-convertible preference shares during the second quarter and about Rs 500 crore from follow-on public offer in the third quarter of this fiscal," Mr. SK Goel further stated.

The capital raised would help the bank to record 25 per cent loan growth for the next two year.

The bank expects to earn a profit of Rs 750 crore this fiscal as against Rs 412 crore in the previous year.

The profit would increase by 82 per cent over the last fiscal.

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