The decision to raise funds was taken at the Board meeting held on December 22, UBI said in a BSE filing.
The Board approved raising of additional capital funds not exceeding Rs 1,500 crore during the year 2012-13 by way of issue of Tier-I and Tier-II capital bonds as per eligibility, it said.
Meanwhile, another public sector lender Bank of Maharashtra (BoM) has cleared raising up to Rs 1,350 crore from various bonds.
BoM plans to raise up to Rs 350 crore from Tier-I unsecured, non convertible, subordinated, perpetual bonds (Innovative Perpetual Debt Instruments), the bank said in a separate filing to the BSE.
Besides, it intends to raise up to Rs 1,000 crore from lower Tier-II bonds in the nature of promissory notes. The bonds would have maturity period of 10 years.
The issue opens on December 26, 2012, closes on December 29, 2012 and the deemed date of allotment is December 31, 2012, it added.