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Union Bank of India gains after raising capital

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Capital Market
Last Updated : Sep 16 2016 | 10:13 AM IST

Union Bank of India rose 1.81% to Rs 146.10 at 9:45 IST on BSE after the bank raised Rs 1000 crore through issue of Basel III additional tier I bonds.

The announcement was made after market hours yesterday, 15 September 2016.

Meanwhile, the S&P BSE Sensex was up 298.60 points or 1.05% at 28,711.49.

On BSE, so far 46,426 shares were traded in the counter as against average daily volume of 7 lakh shares in the past one quarter. The stock hit a high of Rs 146.70 and a low of Rs 145.10 so far during the day. The stock had hit a 52-week high of Rs 188.50 on 8 October 2015. The stock had hit a 52-week low of Rs 104.05 on 29 February 2016. The stock had outperformed the market over the past one month till 15 September 2016, advancing 11.03% compared with 0.93% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 15.45% as against Sensex's 6.31% rise.

The large-cap PSU bank has equity capital of Rs 687.44 crore. Face value per share is Rs 10.

Union Bank of India said that it has on 15 September 2016 issued 10,000 non-convertible, unsecured subordinated Basel III compliant perpetual debt Instruments eligible for inclusion in additional tier 1 (AT1) capital. The bonds are issued for face value of Rs 10 lakh each at par aggregating to Rs 1000 crore on private placement basis. The bonds carry a coupon of 9.5% per annum payable annually. The AT1 bonds are rated 'IND AA' by India Ratings and Research Private and 'CARE AA' by Credit Analysis & Research.

Union Bank of India's net profit fell 67.9% to Rs 166.32 crore on 1.4% decline in total income to Rs 8916.51 crore in Q1 June 2016 over Q1 June 2015.

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Union Bank of India is one of largest state-owned banks in India. The Government of India (GoI) held 63.44% in Union Bank of India (as per the shareholding pattern as on 30 June 2016).

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First Published: Sep 16 2016 | 9:57 AM IST

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