State-owned Uco Bank on Saturday said its board will meet on June 23 to consider raising up to Rs 500 crore as tier-II capital.
Tier-II capital of a bank consists of undisclosed reserves, revaluation reserves, general provisions and loss reserves, hybrid capital instruments, subordinated debt and investment reserve account.
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The loss absorption capacity of tier-II capital is lower than tier-I capital.
In April, the board had approved allotment of preference shares to the government for infusing Rs 2,600 crore capital. In 2019-20, Uco had posted a net loss of Rs 2,436.83 crore.
