In a bid to meet Basel-III norms after 2015, mid-sized lender Union Bank of India is planning to raise Rs 3,000 crore towards equity. In this regard, the bank has given a proposal to the Ministry of Finance for the additional capital and it is currently being studied.
Indian banks, according to Basel III norms, have to maintain their capital adequacy ratio at 9% as against the minimum recommended requirement of 8%. Under Basel-III accord, banks have to maintain Tier-one capital (equity and reserves) at 7% of risk weighted assets (RWA) and a capital conservation bugger of 2.5% of RWA.
The bank had received capital infusion of Rs 1,140 crore from the government last year and it gave proposal to infuse nearly Rs 1,800 crore in this year.
The bank has reported a rise of 9.51% in its net profit at Rs 560.22 crore for first quarter ended June 30, 2013, as compared to Rs 511.59 crore for the same quarter in the previous year. Total income from operation of the bank has increased by 16.04% to Rs 7613.53 crore for the quarter under review as compared to Rs 6561.10 crore for the quarter ended June 30, 2012.
Indian banks, according to Basel III norms, have to maintain their capital adequacy ratio at 9% as against the minimum recommended requirement of 8%. Under Basel-III accord, banks have to maintain Tier-one capital (equity and reserves) at 7% of risk weighted assets (RWA) and a capital conservation bugger of 2.5% of RWA.
The bank had received capital infusion of Rs 1,140 crore from the government last year and it gave proposal to infuse nearly Rs 1,800 crore in this year.
The bank has reported a rise of 9.51% in its net profit at Rs 560.22 crore for first quarter ended June 30, 2013, as compared to Rs 511.59 crore for the same quarter in the previous year. Total income from operation of the bank has increased by 16.04% to Rs 7613.53 crore for the quarter under review as compared to Rs 6561.10 crore for the quarter ended June 30, 2012.
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