BOI, United Bank to raise up to Rs 1,500 crore via bonds

Banks are tapping the bond market to shore up capital adequacy under Basel-III norms ahead of the end of the financial year second quarter in two weeks.
 

Two public sector lenders, United Bank of India and Bank of India (BOI), are raising up to Rs 1,500 crore through tier-I and tier-II bonds. Kolkata-based United Bank of India is raising up to Rs 1,000 crore through the bonds (Rs 500 crore in each tier). Bank of India is raising up to Rs 500 crore via Tier-I bonds.

Both banks are facing elevated pressure on asset quality and profitability. They have to set