The proposed Rs 5 billion Tier-II bond issue of United Bank of India received ‘AAﴫ婮’ rating from Crisil.
This is the first Tier-II capital instrument issued in the Indian market under the Basel III capital regulations.
With effect from April 01, 2013, the Reserve Bank of India (RBI) implemented Basel III capital regulations for Indian banks. This is based on the final guidelines issued in May 2012.
CRISIL believes that these guidelines will structurally strengthen the Indian banking sector by enhancing quantity and quality of capital in Indian banks. Additionally, with the introduction of a capital conservation buffer, banks will be better positioned to absorb potential losses during financial exigencies.
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