Union Bank raises Rs 2,200 cr in tier II capital for business growth

Public sector lender plans tier I bond of Rs 700 crore before financial year closes

State-owned Union Bank of India has raised Rs 2,200 crore in capital through tier II bonds to replace maturing instruments and support business.

The Mumbai-based lender is working on details for issuing tier I bonds worth Rs 700 crore before the financial year closes next March, said its executives. The bonds are compliant with Basel III international norms on international banking.

Executives said by issuing tier II bonds the bank’s capital adequacy ratio (CAR) would increase by just over 10 basis points. The bank's CAR stood at 14.5 per cent in September 2022, up from 13.64 per cent a year