UBI set to raise funds via QIP

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Mumbai | December 07, 2017 3:52 AM

Union Bank of India (UBI) is set to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) in about a week.

Union Bank of India, UBI funds, qip, ubi qip, qualified institutional placement Union Bank of India (UBI) is set to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) in about a week. (PTI)

Union Bank of India (UBI) is set to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) in about a week. The lender has planned an initial offer of Rs 1,000 crore, with a green-shoe option for another Rs 1,000 crore, taking the total offer size up to Rs 2,000 crore, sources in the know of the development said on condition of anonymity. The public sector lender’s capital raising is expected to bolster its capital adequacy ratio, allowing it more headroom to absorb bad loan losses and to undertake fresh lending. The bank had a total Tier 1 Capital of 8.50% as on September 30, 2017, of which Common Equity Tier 1 (CET1) constituted 7%. The bank had a capital adequacy ratio of 11.22% as of September 2017, against 12.01% in the previous quarter. The bank posted a net loss of Rs 1,530 crore for the quarter ended September 2017, against a net profit of Rs 176.6 crore in the same period during the previous financial year.

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