Government has decided to restructure the equity capital of UCO Bank and Punjab & Sind Bank.

The Indian government holds the majority stake in both the Banks i.e. 74.98 percent stake in UCO Bank and 100 percent stake in Punjab & Sind Bank.

The total paid up capital of UCO Bank is approximately Rs. 800 crores out of which Rs. 250 crores will be converted into perpetual non-Convertible preference shares.

Whereas Punjab & Sind Bank's 560 crore of equity capital will be restructured by converting Rs, 160 crores into perpetual debt instrument, 200 crores into perpetual non cumulative shares and Rs. 200 crores into perpetual cumulative preference shares.
 
The restructuring will be possible only after the Government gets a green signal from the Parliament. Finance Minister P.Chidambaram informed that there is no cash out flow for restructuring of equity capital.