Country's fifth largest public sector lender, Union Bank of India (UBI), today said it would raise Tier-II capital within the current fiscal through a mix of foreign currencies and rupee denominations.
"We will raise Tier-II capital within the current fiscal. But, we will wait for some time till the market looks up," UBI's Executive Director T Y Prabhu said here.
Prabhu said that the bank has a headroom for raising Rs 3,000 crore as Tier-II capital, but the bank is still undecided how much to raise in the current fiscal.
"We can't say now how much we will raise. It will all depend on the market condition, the growth in our business and other factors," Prabhu said.
Prabhu said as oil price was coming down, there was a possibility that the market condition would improve in a couple of months from now.
Prabhu said that the bank had already approached the Reserve Bank for opening 500 branches within the current fiscal.
"Half of the branches will come up in rural and semi-urban areas," Prabhu said adding that the bank has 2,418 brnaches now.
Prabhu was talking to reporters here while launching two online products — NEFT and Quick Collection of Cheques (QCCs) — aimed at faster transfering of funds.
The bank is also ready to launch mobile banking and would come out with the service as soon as the apex bank comes out with the guidelines on it, he said.
