Union Bank of India share rose over 5% today after the lender said it plans to raise up to Rs 1,000 crore from bonds to fund business growth. Union Bank share gained 5.64% to Rs 27.15 against previous close of Rs 25.70 on BSE.
The banking stock has risen 5.74% in last 4 days. The share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
The share has fallen 54% in one year and lost 51.465 sinc ethe beginning of this year. Market cap of the lender rose to Rs 17,138 crore.
"The bank is issuing Basel III compliant Tier II bonds in the nature of debentures aggregate issue size not exceeding Rs 1,000 crore, with a base issue size of up to Rs 500 crore and a Green Shoe option to retain oversubscription up to Rs 500 crore," it said in a BSE filing.
The bonds of face value of Rs 10 lakh each, bearing a coupon of 7.18 per cent per annum, will have maturity of 15 years, it said.
Face value or the issue price of the bond is Rs 10 lakh per bond, with a coupon rate of 7.18 percent per annum.
In Q2 of the current fiscal, the lender reported a 55.3 per cent rise in net profit at Rs 517 crore against net profit of Rs 333 crore in the same quarter a year ago.
Net interest income climbed 6.1 per cent to Rs 6,293 crore in Q2 from Rs 5,934 crore in the same period of 2019-20. Gross Non-Performing Assets (NPAs) ratio improved to 14.71 per cent of the gross advances at the end of September quarter from 15.75 per cent in September 2019 quarter .