United Bank plans to raise Rs 4,300 crore

Public sector lender United Bank of India today said it is planning to raise Rs 4,300 crore by issuing bonds and equity capital augmentation through follow on public issue or rights issue.
In total there are three different proposals that will be taken up for consideration by the bank's board on Wednesday.
The bank said its board of directors at its meeting to be held on September 6 will consider the proposal of raising Basel III compliant tier II and additional Tier I bonds up to Rs 1,000 crore and Rs 800 crore, respectively.
Additionally, it will also consider raising of equity capital of an amount not exceeding Rs 1,000 crore in one or more tranches by way of qualified institutions placement, or by way of follow on public issue or rights issue.

The board will also consider the proposal of preferential allotment of equity not exceeding Rs 1,500 crore, it said.
Shares of the bank closed 1.387 per cent down at Rs 17.95 on BSE.