Uco Bank is expected to launch its Rs 200 crore (2 billion) initial public offer in the first week of September.

A decision on charging premium on its offering will be taken within a fortnight.

"We will decide if we will charge a premium after we receive the Securities and Exchange Board of India's approval. We will decide if we will charge a premium of Re 1 or Rs 2 by the end of the month," Uco Bank chairman and managing director, V P Shetty, said.

The bank has a paid up capital of Rs 599 crore (Rs 5.99 billion) with the government holding the entire stake. Post IPO, the government's share will decrease to around 75 per cent.

The bank had received finance ministry's approval last year to write off accumulated losses of over Rs 1,600 crore (Rs 16 billion). Shetty said the bank is focusing to offer its share mainly to the retail investors.

He said that the bank was expecting to increase its business by 20 per cent during the current financial year from around Rs 48,000 crore (Rs 480 billion) at the end of March 2003.

Though deposits are growing, advances have remained at nearly the same level. The bank's advances at the end of June this year were estimated at Rs 17,000 crore (Rs 170 billion), about the same as March 2003.