Union Bank of India has issued 10,000 Basel III compliant Tier II bonds of face value of Rs 10,00,000 each at par, with 10 year tenure, bearing 8.61% per annum coupon payable annually and with call option after 5 years, aggregating to Rs 1,000 crore on private placement basis on March 29, 2016. The bonds are rated ‘AA+’ by India Rating.
The bank has reported standalone net profit of Rs 78.54 crore for the quarter ended December 31, 2015, registering decline of 74.02% y-o-y and 88.06% q-o-q. The bank’s Net Interest Income (NII) stood at 1,996.51 crore, registering decline of 5.87% y-o-y and 5% q-o-q The bank’s Net Interest Margin stood at 2.22% for the quarter.
Gross non-performing assets (NPA) for the quarter stood at 7.05%, grew by 197 bps y-o-y and 93 bps q-o-q. Provisions stood at Rs 1,237.65 crore, recording growth of 45.27% y-o-y and three-folds jump q-o-q.
