State-owned United Bank of India (UBI) plans to raise R300 crore by soon selling shares on preferential basis to Life Insurance Corporation (LIC). “We are waiting for the government approval, and expect it to come shortly. Thereafter, we will issue shares to LIC on a preferential basis,” UBI executive director Deepak Narang said.
The bank proposes to issue 8.45 crore shares to LIC for R35.50 per share. After this, the government’s share in the bank will come down from the existing 89.47%to 82%.
At present, LIC owns 2.72% stake in UBI. Meanwhile, as part of its effort to recover loans, the bank will soon embark upon a process to “name and shame” its wilful defaulters.