The Hindu Business Line : Union Bank may write back Rs 50-cr depreciation in Q2

Union Bank of India may write-back the Rs 50-crore depreciation on investments in the `available for sale category', which it had to book in the first quarter of the current year.

The `hit' related to some equity and mutual funds, which are now performing better, the bank's Chairman and Managing Director, Mr M. V. Nair, said at a press conference here on Monday.

Mr Nair said that the bank's investment book was well protected as it was almost entirely in the `held to maturity' category.

Answering a question, he said that the bank had an option to raise Rs 600 crore through hybrid instruments and another Rs 1,000 crore by bonds that would come under `upper tier-II' capital. (Upper tier-II instruments are long-term bonds of at least 15-year tenor, but with an option with the bank to redeem the bonds at the end of 10 years. The instruments also come later in the order of repayments in the event of liquidation compared with other long-term bonds.)

Mr Nair was here in connection with a meeting with Union Bank's exporter-importer customers. He said at the press conference that the bank recently introduced `Reuters Trading for Foreign Exchange' and `Reuters Trading for Bullion', which are electronic trading platforms.