UBI issues bond to raise Rs 500 cr,target Rs 72,000 cr business

Kolkata, Jun 15 (UNI) United Bank of India(UBI) has issued an Upper Tier II bond at the rate of 10.65 per cent to raise Rs 500 crore and increase the total business to Rs 72,000 crore at the end of this fiscal.

Speaking to mediapersons here today in the Banking Conclave, UBI Chairman&Managing Director P K Gupta said that the issue would open today and has been rated as AA-. The bank expects to raise Rs 575 crore in case of over subscription.

The investors would be able withdraw the bond from after 10 years but if he retains the bond for 15 years, he would be able get an additional 0.5 per cent.

He said the bank targets to increase deposits by 26 per cent to Rs 43,500 crore while the advances at 17 per cent to Rs 28,500 crore. The bank's total business in 2006-07 was Rs 51,808 crore.

The Cash Deposit(CD) ratio was reported to be 65.5 per cent compared to 61 in the last fiscal.

UNI