United Bank of India has raised Rs 150 crore through an issue of Basel III compliant bonds on a private placement basis.
"The bank has issued and allotted 1500 rated, unsecured, non-convertible, fully paid-up, redeemable, listed, Basel III compliant tier II debt instruments of Rs 10 lakh each for cash for Rs 150 crore," the bank said in a regulatory filing. The tenure of the bonds is 10 years.
United Bank said the bonds are proposed to be listed on wholesale debt segment of BSE.
In view of implementation of global standard Basel III Capital Regulations, banks need to improve and strengthen their capital planning processes.
Basel III norms are implemented globally to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
The Indian banking system is implementing the norms from April 2013 in phases and is expected to fully comply with the Basel III standards by March 2019, three months behind the internally accepted date of January 1, 2019.
The stock of the bank today closed 1.37 per cent down at Rs 18 on BSE.
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