The Union Bank of India plans to raise capital worth Rs 1,000 crore through a mix of tier-I and tier-II bonds in the next one month to support business growth.
The bank has headroom to raise up to Rs 3,500 crore and it would try to raise the amount by the end of this year said Chairman and Managing Director M V Nair, after announcing the new logo of the state-owned bank.
It will issue perpetual bonds worth Rs 200 crore, upper tier-II bonds of Rs 300 crore and lower tier-II bonds of Rs 500 crore. The Mumbai-based bank is likely to maintain its capital adequacy ratio (CAR) at 12 per cent.
It was looking at opening offices at 10 centres overseas, including Sydney, the UK and Canada. It has decided to open branches a credit growth of 22 per cent for the current financial year. The bank also said it may raise $100 million (Rs 440 crore) through its branch in Hong-Kong.
