Union Bank of India of raises Rs 1,000 crore on private placement basis

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.