United Bank to raise up to Rs 300 cr from LIC

unitedbankUnited Bank of India said it is allotting equity worth up to Rs 300 cr to Life Insurance Corporation of India.

United Bank of India is an Indian government-owned financial services company headquartered in Kolkata, West Bengal, India.

Life Insurance Corporation of India is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of ₹1,560,482 crore(US$230 billion).

United Bank has 35 Regional offices and 2005 branches spread all over India.

The fund raising comes in the wake of a weakening of Indian public sector banks’ balances sheets due to loan defaults. Many big companies and businessmen in India have defaulted on their loans, pushing banks into stressful territory.

With major presence in Eastern India, United Bank has three full-fledged overseas branches, one each at Kolkata, New Delhi and Mumbai.

The Life Insurance Corporation of India was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the private insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation.