The bank also said it would look to reduce operational cost and sell non-core assets over a period of time to unlock capital.
Lower ability of banks to raise resources is expected to pose challenges to the country’s funding needs.
Managing Director M R Rao told ET that consultant is evaluating all options including share-swap or all-cash deal.
The Indian currency was short of touching the psychological 65 mark on Wednesday.
Experts not sure whether oversight committee can erase NPA problem
The Indian currency closed 0.53 per cent weaker at 64.89 per dollar against Monday's close of 64.55.
The rating firm has downgraded the bank's various debt instruments Tuesday, for the second time in four months, after the record Rs 5158 crore annual loss eroded the bank's capital.
The government has advised all state-run banks to sell down their non-core assets to unlock capital for funding core business.
UBI breached the second category risk threshold with net NPA more than 9% and accordingly RBI may give direction to the bank management on credit risk and capital management.
Arohan's loan portfolio was at Rs 1,031 cr as on April 30 provided through 271 branches operating in seven low-income states Assam, Bihar, Chattisgarh, Jharkhand, Meghalaya, WB etc.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon