United Bank to raise Rs 1,000 crore through securities

NEW DELHI: Public sector United Bank of India (UBI) plans to raise up to Rs 1,000 crore by issuing securities.

A meeting of the board of directors will be held on Thursday to approve the same.

"The Board of Directors... shall consider for approval the proposal for raising additional tier one capital under Basel-III norms up to Rs 1,000 crore through issuance of perpetual debt instruments," the bank said in a BSE filing.

These subordinated, non-convertible, non-cumulative, listed, Basel-III compliant additional tier one bonds will be in the form of debenture or promissory notes of the face value of Rs 10 lakh each.

UBI said, the money will be raised through private placement of bonds that is to be included in its additional tier one capital for the purpose of ascertaining the capital adequacy ratios.

The Reserve Bank began implementing Basel-III norms in phases from 2013, which are to be fully complied by the banks within March 2019.

UBI shares today closed at Rs 19.30 a piece on BSE, up 2.66 per cent.