United Bank to raise Rs 1,000 cr equity capital

New Delhi: United Bank of India will raise up to Rs 1,000 crore as capital through issue of bonds or equity capital to the government.

The board of the state-owned bank has approved raising Tier-I capital of up to Rs 1,000 crore either through bonds on private placement basis to the eligible institutions or issue of preference shares to the Central Government or other institutional investors.

It has also approved the fund raising by issuance of equity shares through preferential allotment to government, the bank has said in a filing to the BSE.

The capital raising would help the bank comply with Basel-III or the global prudential norms for banking sector.

Government holds 87.99% in the Kolkata-headquartered bank.

Government has already announced Rs 700 crore infusion in the United Bank of India in the current fiscal, ending March 31.