United Bank of India is planning to raise about Rs 100 crore through 10-year non-convertible bonds. The bank will issue these bonds at a coupon rate of 9.20% by the end of December this year in order to augment its Tier II capital. IDFC will be the arranger for its proposed Tier II bond issue.
The bond issue will have green shoe options to raise additional Rs 100 crore on private placement basis. As on September 30, 2011 United Bank's capital adequacy was at 12.95%.
United Bank of India’s business is principally divided into retail banking, corporate / wholesale banking, priority sector banking, treasury operations and other banking services such as agency functions for insurance and mutual fund distribution, pension and tax collection services.
