Union Bank plans to raise Rs 2,000 crore by issuing Tier-II bonds

Public sector lender Union Bank of India plans to raise up to Rs 2,000 crore by issuing Tier-II bonds. This will improve the bank’s capital adequacy which will help grow business and meet regulatory norms.

The board has approved the enabling resolution to raise the capital by issuing Basel III-compliant bonds.  

The bank also has flexibility to raise additional equity from the market, with government stake at 89.1 per cent as of June 30. Over the past three financial years, the government has infused around Rs 41,397 crore into the combined entity — two public sector lenders Andhra Bank and Corporation Bank