Union Bank of India raises Rs 1,500 crore

In a statement, the bank said it raised the money by issuing bonds to be added as tier-I capital

State-owned Union Bank of India (UBI) on Monday said it has raised Rs 1,500 crore by issuing bonds to be added as tier-I capital.

"The bank has allotted unsecured, subordinated, non-convertible, taxable, perpetual, fully paid-up Basel III compliant additional tier-I bonds on the nature of debentures aggregating to Rs 1,500 crore on December 20, 2021," Union Bank of India said in a regulatory filing.

The bonds are eligible for inclusion in tier-I capital of the bank, it said. To comply with Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

UBI shares closed at Rs 42.15 apiece on BSE, down by 4.42 per cent from the previous close.

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