Kolkata–Public sector lender United Bank of India on Monday said it is planning raise up to Rs 827.49 crore of aggregated capital by issuing equity shares and through debt instruments.

In a regulatory filing, the lender said the Board of Directors at its meeting held on Monday has approved “issue and allotment” of equity shares at premium to the President of India acting on behalf of the Government of India by “way of preferential allotment not exceeding Rs 500 crore”.

The bank also said, in a separate regulatory filing, the Board Level Issue Approval Committee has approved the allotment of 54,906,211 equity shares to “eligible qualified institutional buyers at the issue price of Rs 23.22 per equity share, aggregating to approximately Rs 127.49 crore”.

The lender has also proposed to raise Basel III compliant additional tier 1 capital up to Rs 200 crore.

“The Exchange is hereby informed that the Bank proposes to issue unsecured, subordinated, fully paid up capital, non-convertible, listed, Basel III compliant, perpetual debt instrument in the nature of debentures for inclusion in additional tier 1 capital of Rs 150 crore with green shoe option of Rs 50 crore aggregating up to Rs 200 crore on a private placement basis…,” the filing said.

Under Basel III, the bank’s capital adequacy ratio stood at 10.84 percent with the tier 1 capital at 8.66 percent as on December 31, 2016. (IANS)