Public sector bank United Bank of India (UBI) clarified on Thursday that the price band for its upcoming public offer would have a price band of Rs. 60-66. The bank is expecting to raise Rs. 350 crore from the issue that would end up diluting government's stake to 84.2 per cent from existing 100 per cent.

Scheduled to open on February 23 and close on February 25, the issue offers five crore equity shares for taking. Retail investors would be issued at five per cent discount on the issue price.

However, as per the S C Gupta, CMD, United Bank of India, the price band of Rs. 60-66 is just tentative and the bank would announce its final price band just two prior to the issue opens.

While five per cent of the issue is reserved for the bank's employees, of the balance 60 per cent is offered to qualified institutional buyers with a five per cent reservation for the mutual funds. Retail investors have 28.5 per cent of the issue reserved for them.

UnitedBank of India, apart from Punjab and Sind Bank, was the only other bank in the country where the government had 100 per cent ownership.