The Hindu Business Line : Union Bank finalising public issue plans

UNION Bank of India (UBI) expects to firm up its plans on the proposed public issue in a couple of months and tap the market sometime during January next year. The bank had tapped the capital market with its initial public offering (IPO) of Rs 288 crore during August 2002.

Aimed at further augmenting its long-term resources and capital adequacy ratio (CAR), the bank proposes to come out with the second public issue, its General Manager (Retail Banking), Mr V.S.R. Murthy, said.

He was addressing newspersons here on Monday to announce the bank's tie-up with Bajaj Auto Ltd for financing their two-wheelers in Andhra Pradesh, Maharashtra and Uttar Pradesh.

"We are currently going through the presentations being made by the merchant bankers on the proposed public issue. We are planning an issue of 4.5-crore equity shares. We expect to finalise the premium size and appoint merchant bankers before the year-end.

"The public issue enables the bank improve its capital adequacy ratio to over 13 per cent from the existing level of 11.06 per cent," Mr Murthy said.

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