Union Bank to raise funds via Swiss bonds

State-owned Union Bank of India today said it plans to raise funds through Swiss francs denominated bonds soon.

"We plan to raise funds, via Swiss francs denominated bonds, which would be utilised for syndicated loans and trade finance purpose," Union Bank of India Executive Director S C Kalia told PTI.

The bank intends to raise about $200 million and it would be raised soon, he said.
    
If things materialise, he said, this would be first ever fund raising from overseas market through francs denominated bonds by the bank.
    
Last week, Union Bank of India Chairman and Managing Director M V Nair had said, the bank plans to raise $200 million (about Rs 900 crore) from the overseas market in the next one month through a bond issue.
    
"We are planning to raise another $175-200 million in the next one month's time through bonds," Nair had said. In the last four months, the bank has raised $400 million from medium-term notes and $175 million from bonds, he had said.
    
For the second quarter ended September 30, 2010, Union Bank of India reported a 39.94 per cent fall in net profit to Rs 303.39 crore. It had posted a net profit of Rs 505.10 crore for the corresponding period last fiscal.
    
However, Union Bank of India's total income during the second quarter went up by 18.64 per cent to Rs 4,461.88 crore from Rs 3,760.90 crore in the year-ago period.