Union Bank of India to raise Rs 1,386 cr via QIP

State-owned Union Bank of India has proposed to raise Rs 1,386 crore through Qualified

RELATED ARTICLES

Institutional Placement (QIP) to fund its business growth.

Shareholders of the bank have approved raising of capital up to Rs 1,386 crore by way of QIP, UBI said in a statement.

The bank had earlier planned the QIP last fiscal but it was called off considering poor market conditions.

Therefore, the bank sought extension of the proposal from shareholders for raising fund through QIP in 2014-15. It is looking to raise the fund during the second quarter of the current fiscal.

The planned QIP will improve its core tier-I capital, which had stood at 7.54 per cent in March quarter, by 0.50 per cent.

The UBI scrip was trading at Rs 241.45, up 6.55 per cent, on the BSE.

Besides QIP, the bank is expecting capital infusion from the government during the current fiscal. The government infused Rs 500 crore in UBI during 2013-14 as part of Rs 14,000 crore recapitalisation plan.

Recently, the bank raised $350 million (Rs 2,100 crore) through bonds from overseas market.

The 5.5 years bonds were priced at a spread of 280 basis points and was oversubscribed 3.4 times with demand from 150 investors.

This was part of $2 billion Medium Term Note Programme.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Indian-promoted global corporations must follow accounting best practices

    The international advisory board (IAB) of capital market regulator Securities and Exchange Board of India (Sebi) has suggested that separate governanc

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Rajgopal Nidamboor

Focus to keep your daily qualms at bay

Philosophers and scientists have, for long, compared the human brain ...

Gautam Gupta

What we can learn from the French fashion scene

It was a pleasure and a treat to experience one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture