UBI plans to raise up to Rs 500 cr

State-run lender United Bank of India (UBI) on Wednesday said it is planning to raise up to Rs 500 crore through issuing and allotting of Basel III compliant bonds.

UBI would seek approval for this from its board which is scheduled to meet on December 6.

"Issue and allotment of Basel III compliant additional tier-I bonds up to Rs 500 crore and board meeting to consider issue of equity shares under ESOP (employee stock ownership plan)/ ESPS (employee stock purchase scheme).... we hereby inform that the same shall be taken up for consideration and approval at the ensuing board meeting on December 6, 2017," the bank said in a regulatory filing.

The board would consider the proposal for issue of up to five crore equity shares in one or more tranches by way of ESOP/ESPS, it said.

Under Basel III, the bank's capital adequacy ratio stood at 10.70 per cent with the tier I capital at 7.98 per cent as on September 30, 2017.

The lender had recently issued tier I and tier II bonds aggregating Rs 830 crore in order to strengthen its capital adequacy ratio.

The city-headquartered bank had reported a whopping net loss of Rs 344.83 crore for the second quarter ended September 30, as against a net profit of Rs 43.53 crore for the corresponding period in the last fiscal.

--IANS

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