United Bank of India plans to raise Rs 1,000 cr via QIP

Kolkata-based United Bank of India (UBI) is planning to raise Rs 1,000 crore capital and would soon seek the government's nod for the same.

"We are planning to raise Rs 1,000 crore fresh capital preferably through QIP route. We would write to the Ministry within 2-3 months," UBI Chairman and Managing Director Archana Bhargava said here today. She said, "We will seek government's permission for a rights issue but we will go ahead with QIP. Then we will pursue for a rights offer." UBI has a capital adequacy ratio of 11.66 per cent and the bank has been proposing to raise it to around 13 per cent. Also read: United Bank Q4 net plunges 79% on higher provisions UBI would also raise capital to fuel future business and investment in the foreign branches, Bhargava said. "We have representative office in Bangladesh and Mayanmar and we wish to convert them into branches," she added.  Meanwhile, the bank is aiming to cross Rs 2,00,000 crore business in the current fiscal. "We also aim to improve the net interest margin by three per cent to 2.67 per cent in the current year," Bhargava said.