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Public sector lender, United Bank of India, plans to raise Rs 1,000 crore as additional Tier-I capital under Basel-III norms for this fiscal (FY-16).
The funds are to be raised through issuance of perpetual debt instruments in the form of subordinated, non-convertible, non-cumulative, listed Basel-III complaint additional Tier-I bonds in the form of debentures, promissory notes of face value of Rs 10 lakh each on private placement basis, it said in a notification to the bourses.
The money is to be raised as its additional tier-I capital for the purpose of ascertaining the capital adequacy ratios.
Results UBI saw a 59 per cent dip in net profit to Rs 17 crore for the quarter ending December 31, 2015. Net profit for the corresponding period last year stood at Rs 42 crore.
Treasury operations (16 per cent Y-o-Y growth) and retail banking (74 per cent growth in profit before tax) were the two most profitable segments for the bank; which bolstered operating profit.
However, the corporate/wholesale banking segment came as a cropper with profits before tax dipping by nearly 60 per cent on an annual basis.
The total income was also down by 4 per cent to Rs 2,828 crore; from the Rs 2,935 crore it reported in the third quarter of last fiscal. Provisioning, during the period, saw a near 12 per cent decline to Rs 458 crore; as against the Rs 520 crore it reported in the year ago period.
Asset Quality The bank also saw a decline in fresh slippages on a Y-o-Y basis. Fresh slippages were to the tune of Rs 1,160 crore (Rs 1,622 crore).
The gross NPA in percentage terms improved to 9.57 (12.03).
Net NPAs came down to Rs 3,965 crore (Rs 5,240 crore); while the net NPA per cent stood lower at 5.91 (8.50).
UBI shares closed at Rs 17.00, down 7.61 per cent, at the BSE, on Thursday.
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