UBI to raise Rs 500 cr capital via tier II bonds

Kolkata July 7 (IANS) Public sector lender United Bank of India on Friday said it is planning to raise up to Rs 500 crore capital through issuing Basel III compliant tier II bonds.

"..the board of directors of the bank proposes to approve by circulation on July 12 2017 issuance and allotment of unsecured Basel III compliant listed tier II bonds in the form of promissory note .... aggregating up to Rs 500 crore " the lender said in a regulatory filing.

Bank s capital adequacy ratio as on March 31 2017 stood at 11.14 per cent.

The lender had received Rs 1 026 crore of capital support from the Centre in two tranches in the last financial year and it also had raised Rs 127.49 crore via its maiden QIP issue.

Further the bank had raised additional Tier-I or AT-1 bonds to the tune of Rs 200 crore to augment its Tier-I capital.

--IANS
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