United Bank of India plans to raise at least Rs250 crore but not exceeding Rs300 crore, including premium from rights issue
New Delhi: United Bank of India has said its board has given approval to raise up to Rs 300 crore through a rights issue, reports PTI.
The Board meeting has approved to create, issue and allot up to such numbers of shares of Rs10 each at a premium to be decided subsequently on rights basis to the existing shareholders of the bank as on the record date to be fixed subsequently, United Bank of India said in a filing on the BSE.
The state-owned bank proposes to raise at least Rs250 crore but not exceeding Rs300 crore, including premium from rights issue, it said.
Government of India holds 81.56% stake in the Kolkata-based bank. This means that if it decides to raise fund through rights issue then the Government of India being the largest shareholder has to subscribe shares to the extent of its holding in the bank.
Prior board approval has been secured to enable capital infusion by the government in the bank.
Besides, the board of the bank also given approval to raise up to Rs500 crore by allotting perpetual bonds through private placement.
It also approved issue and allotment of perpetual bonds in the nature of promissory notes of Rs10 lakh each for cash at par up to a maximum amount of Rs250 crore with a green shoe option up to a maximum of Rs250 crore through private placement, the filing added.
Earlier, Financial Services Secretary DK Mittal had said the government will finalise Rs15,000-crore capital infusion for public sector banks soon to help them enhance capital base and increase lending capacity.
Rights issue is under consideration for recapitalisation of banks, he had said, adding that if the government opts for rights issue for banks, it will be done for all banks.
The state government informed the HC that a white paper on the alleged multi-crore irrigation scam would be ready within next three weeks
Mumbai: Maharashtra government on Thursday informed the Bombay High Court that a white paper on the alleged multi-crore irrigation scam, involving bureaucrats of Water Resources Department and Konkan Irrigation Development Corporation (KIDC), would be ready within three weeks, reports PTI.
This statement was made by Advocate General Darius Khambata before a division bench of Justices AM Khanwilkar and Mridula Bhatkar which was hearing a public interest litigation filed by social activist Pravin Wategaonkar seeking an inquiry by the Central Bureau of Investigation (RBI) into the scam.
"A White paper will be ready in this case within three weeks. Based on this we will file an affidavit before the court in reply to the allegations levelled in the petition," Khambata said.
The bench directed the government to file its affidavit by 20th December.
Wategaonkar in his petition has alleged criminal conspiracy and misconduct on the part of public servants and sought CBI probe in all projects where cost escalations of Rs20,000 crore were approved across three months in 2009 by the Water Resources Department (WRD).
"It is not mismanagement or ignorance of the WRD but deliberate and well managed act of massive corruption by WRD and KIDC and contractors paid to carry out works associated with these projects," the petition claims.
Relying on a speech made by Chief Minister Prithviraj Chavan in May this year, Wategaonkar has said, "In the decade beginning with year 2000-01 till 2009-10, the government of Maharashtra has spent about Rs70,000 crores on irrigation projects. In the next decade the projected cost is Rs75,000 crores. Probe should be conducted to rein in the unwarranted cost escalations and arbitrariness."
The activist further said many acts of omission and commission by the government departments against public interest would amount to criminal misconduct and abuse of power by public servants and thus an offence under the Prevention of Corruption Act.
According to the petition, even after incurring an expenditure of Rs4,363 crore up to 2009-10 on 90 projects of KIDC, only 13 projects could be completed.
"Due to slow progress of the projects the very objective of forming KIDC which is for expediting the entire process of completing ongoing projects has failed. The projects which otherwise would have been completed by the irrigation department in ten years, could not be completed by KIDC even after 12 years of its formation," the PIL states.