United Bank raises Rs 200 crore to up capital base

Public sector United Bank of India has raised Rs 200 crore to add up to its tier-I capital under Basel III regulations.
United Bank has issued 2,000 units of debt instruments in the nature of debentures for inclusion in its additional tier-I capital, it said in an exchange filing.
The bonds which are Basel III complaint helped raise money in a break-up of Rs 150 crore plus a green shoe option of Rs 50 crore on a private placement basis.
"The issue was fully subscribed, including green shoe option, by four investors," the Kolkata based lender said.
Banks have to strength capital base, as per Basel-III Capital Regulations, so as to mitigate concerns emanating from potential stresses on asset quality and consequential impact on performance and profitability of banks.

Indian banks are implementing these globally accepted standards in phases since April 1, 2013. They are expected to fully implement these norms by March 2019.
United Bank of India share closed flat at Rs 25.25 on BSE.