Union Bank of India raises Rs 500 cr by issuing Basel III compliant bonds

State-owned Union Bank of India on Tuesday said it has raised Rs 500 crore debt capital by issuing Basel III compliant bonds.

The bank has allotted unsecured, subordinated, non-convertible taxable perpetual fully paid-up Basel III compliant debt instruments in the nature of debentures aggregating to Rs 500 crore on December 15, 2020, Union Bank of India said in a regulatory filing.

To comply with Basel-III capital regulations, the banks 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.

Shares of Union Bank of India on Tuesday closed 1.03 per cent lower at Rs 33.50 apiece on the BSE.