UBI plans bond issue to raise Rs 500cr
State-run United Bank of India plans to raise Rs 500 crore through Basel III compliant additional tier 1 bonds.
- Published 23.11.17
Calcutta: State-run United Bank of India plans to raise Rs 500 crore through Basel III compliant additional tier 1 bonds.
The bank's capital base has seen a decline in the July-September quarter of 2017-18 compared with the previous year.
The board of the city-based lender will take up the capital raising proposal at its meeting on December 6, the UBI said in a filing to the Bombay Stock Exchange on Wednesday.
The bank's capital adequacy ratio at the end of the second quarter was 10.70 per cent compared with 10.88 per cent a year ago.
There was a fall in tier 1 capital from Rs 6,470.17 crore in the second quarter of 2016-17 to Rs 5,459.47 crore in the second quarter of 2017-18.
In addition to tier 1 bonds, the board will consider for approval the issue of 5 crore equity shares in one or more tranches by way of Esop (employee stock ownership plan)/ESPS (employee stock purchase scheme).
UBI, in a filing to the bourses in September, had outlined its capital raising plan through additional tier 1, tier 2 bonds, qualified institutional placement and preferential allotment.
The bank had suffered a second-quarter net loss of Rs 344.83 crore against a net profit of Rs 43.53 crore a year ago.
Thomas Cook India's board has approved a fund-raising plan of Rs 600 crore by divesting a 5.42 per cent stake in its subsidiary Quess Corp.
The company said the stake sale would be carried out through the offer-for-sale route. It has fixed a floor price of Rs 800 a share.
The company said the move was necessary to meet Sebi regulations that require promoters to bring down their stake to 75 per cent.
Post the dilution, the combined promoter shareholding in Quess Corp (of Thomas Cook India and Ajit Isaac, CEO of Quess Corp) would be 75.38 per cent.