Union Bank of India raises ₹3,000 crore via long-term bonds; subscribed 3.12x

State-owned Union Bank of India on Friday (March 20) said it has raised ₹3,000 crore through the issue of senior, rated, listed, unsecured, redeemable, taxable, transferable long-term bonds on a private placement basis. The base issue size of ₹3,000 crore was accompanied by a green-shoe option of ₹4,500 crore, bringing the total potential issue to ₹7,500 crore.

The bonds carry a coupon rate of 7.16% per annum and comprise 3,00,000 bonds of ₹1,00,000 each. The issue, which opened and closed on March 20, 2026, received bids totalling ₹9,379.82 crore from qualified institutional buyers, oversubscribing the base issue by 3.12 times. The bank accepted bids worth ₹3,000 crore at the cut-off rate.

The allotment of bonds is deemed to occur on March 24, 2026. A total of 48 bids were received through the NSE electronic bidding platform, of which 14 were accepted. This fundraising is intended to finance infrastructure projects and affordable housing.

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Third quarter results

Union Bank's slippages at the end of the December quarter stood at ₹1,853 crore, compared to ₹2,151 crore during the September quarter. The lender's asset quality also improved on a sequential basis. Gross non-performing assets (GNPA) improved to 3.06% from 3.29% in September, while net NPA improved to 0.51% from 0.55% in the previous quarter.

In absolute terms, Union Bank's GNPA improved to ₹31,121 crore at the end of the December quarter from ₹32,085 crore in September, while its net NPAs stood at ₹5,102 crore from ₹5,209 crore last quarter.

Union Bank of India's net profit increased by 9% on a year-on-year basis to ₹5,017 crore, compared to ₹4,604 crore it reported during the same quarter last year. Its Net interest income (NII) or core income remained flat, rising 1% year-on-year to ₹9,328 crore.

Also Read: Union Bank of India Q2 Results: Stock falls as Agri slippages rise despite decline in segment loans

Shares of Union Bank of India Ltd ended at ₹177.65, up by ₹5.60, or 3.25%, on the BSE today, March 20.