The share price of Union Bank of India jumped 5 percent in intraday trade on BSE on November 25, a day after the lender disclosed its plans of issuing Basel III Compliant Tier II bonds in the nature of debentures.
In a BSE filing, the bank said on November 24 that it was "issuing Basel Ill compliant Tier II bonds in the nature of debentures (Series XXVI) of 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".
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.
The state-owned bank reported a 55.3 percent jump in its net profit at Rs 517 crore in the second quarter ended September.
Net interest income grew by 6.1 percent to Rs 6,293 crore in the July-September period of 2020-21 from Rs 5,934 crore in the same period of 2019-20, it said in a release.
Gross non-performing assets (NPAs) ratio improved to 14.71 percent of the gross advances at the end of September this year from 15.75 percent by September 2019.
Net NPAs fell to 4.13 percent as of September from 6.40 percent in the year-ago period. Provision coverage ratio improved to 83.16 percent as of September 30, 2020, compared to 74.26 percent in the year-ago period.Shares of the company traded 2.72 percent higher at Rs 26.40 on BSE at 1145 hours.