New Delhi, Dec 6 (PTI) State-owned United Bank of India will raise Rs 1,190 crore through issuance of Basel III compliant additional tier I bonds.

The decision was taken at the board of directors meeting held today.

“The board of directors of the bank at its meeting…

approved issue and allotment of Basel III compliant additional tier I bonds up to Rs 1,190 crore,” United Bank said in a regulatory filing.

Banks globally have to comply with the Basel III norms so as to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks post the global sub-prime crisis of 2008 that hit the banking industry hard.

Indian banking system has been implementing Basel III standards in phases since April 1, 2013. The banks are expected to fully implement these norms by March 2019.

This will align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.

The board also approved the proposal to issue up to 5 crore equity shares in one of more tranches by way of employee stock options (ESOP).

United Bank of India stock closed 0.58 per cent up at Rs 17.45 on BSE.

This is published unedited from the PTI feed.