Uco Bank to offset Rs 12,537 crore loss against share premium account balance

Kolkata: State-owned lender is planning to set off its accumulated losses of Rs 12,537 crore against the balance in the share premium account and take the same into account during financial year 2021-22.

The bank said this is the most practical and economically efficient option available in the present scenario to present a true and fair view of the financial position of the bank.

The Kolkata-based bank has convened an extra general meeting with shareholders on May 7 to seek their approval.

The bank's equity capital structure and shareholding pattern post reduction of share premium account will remain unchanged. The book value of the shares will also remain unchanged, the bank said.

Share Premium balance is a reserve that can only be used for the defined purposes. A share premium account reflects the difference between the face value of shares and the subscription price of the shares.

Uco's authorized capital is Rs 15,000 crore and paid-up equity capital is Rs 9918.34 crore with the government holding 94.44%.

The bank will also be seeking approval for raising Rs 2600 crore from the government by issuing preference shares.