Uco Bank shareholders approve settling Rs 12,537 cr accumulated loss using share premium balance

Kolkata: Shareholders of state-owned Uco Bank have approved setting off accumulated losses of Rs 12,537 crore against the balance in the share premium account.

The special resolution was passed with 99.99% majority. A majority of the shareholders cast their votes through remote e-voting between May 4 and May 6, the bank said.

The accumulated loss was Rs 12537 crore as on March 31, 2020and the adjustment was taken into account during financial year 2021-22.

The bank had earlier said this was 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.

Shareholders also approved raising of Rs 2600 crore from the government on preferential basis at an issue price of Rs 12.76 per equity share with Rs 10 face value.

The adjustment of accumulated loss against the share premium account will not change the bank's equity capital structure and shareholding pattern.

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% at the end of March.