United Bank of India has raised Rs 500 crore in bonds subscribed by Life Insurance Corporation of India under the new Basel III regime which has come into effect from April 2013. Basel III bond is a hybrid instrument wherein the investor bears the risk if the bank faces liquidation although bonds normally demand higher repayment obligation from issuers.
The bank’s net profit for the Q4FY13 rose by 2.09% at Rs 789.38 crore as compared to Rs 773.19 crore for the Q4FY12. Its total income has increased by 15.41% to Rs 7500.59 crore for the quarter from Rs 6498.79 crore for the corresponding quarter of the previous year.
