Union Bank to raise $200 mn from overseas market

Union Bank to raise $200 mn from overseas market

Mumbai: State-owned Union Bank of India on Wednesday said it is planning to raise $200 million (about Rs900 crore) from the overseas market in the next two-month through a bond issue.

“We are planning to raise another $170-200 million Medium Term Notes (bonds) in the next two month’s time through bonds," Union Bank of India managing director M. V. Nair told reporters here on the sidelines of a function here.

The bank which has already held a road show in Switzerland for this purpose, he said.

“Whether the funds will be raised via Swiss francs or Euro denominated bonds, will be decided later," he added.

The funds raised would be utilised for funding overseas business, Nair said.

In the last four months, the bank has raised $400 million from medium-term notes (MTR) and $175 million from bonds, he said.

For the second quarter ended 30 September, 2010, Union Bank of India reported a 39.94% fall in net profit to Rs303.39 crore.

It had posted a net profit of Rs505.10 crore for the corresponding period last fiscal.

However, Union Bank of India’s total income during the second quarter went up by 18.64% to Rs4,461.88 crore from Rs3,760.90 crore in the year-ago period.

The bank had earlier this week said it was expecting Rs1,150 crore capital infusion from the government by March 2011, which will increase the Centre’s stake to 58%.

Currently, the government holds 55.43% stake in Union Bank of India.