UCO Bank, Kolkata based nationalized bank, needs around Rs 14,000 crore over the next five years to meet the new Basel-III capital norms. The Chairman and Managing Director (CMD) of UCO Bank Arun Kaul said it on Tuesday. The bank has decided to cut its foreign presence and lend more to retail and SME sectors to preserve capital.
UCO Bank closed last financial year with a capital adequacy ratio of 12.35 per cent. Of this, Tier-I ratio was 8.09 per cent. In 2010-11 capital adequacy ratio of the bank was 13.80 per cent.
According to Basel-III norms, Indian banks need to maintain a minimum capital adequacy ratio of nine per cent in addition to a capital conservation buffer, which will be in the form of common equity at 2.5 per cent of the risk-weighted assets.