Union Bank to raise Rs 750 cr via Basel III bonds

Public sector lender Union Bank of India plans to raise Rs 750 crore by issuing Basel III compliant bonds.
"We wish to inform you that the bank intends to raise capital funds through issuance of Basel III compliant tier II bonds," Union Bank said in a regulatory filing.
Crisil Ratings has assigned 'Crisil AAA/Negative' to the bank's proposed Basel III compliant tier II bonds of Rs 750 crore, it added.
In view of implementation of global standard Basel III Capital Regulations, banks need to improve and strengthen their capital planning processes.
The norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Being implemented in phases since April 1, 2013, India is expected to fully implement Basel III standards by March 2019.
This will align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.
Share of the bank closed 1.25 per cent down at Rs 134.20 on BSE.