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Economic Times
4 days ago
- Business
- Economic Times
SBI launches Rs 25,000 crore QIP, floor price at Rs 811.05 per share
PSU lender State Bank of India (SBI) on Wednesday launched a Rs 25,000 crore ($2.9 billion) share sale to institutional investors while approving the floor price for the issue at Rs 811.05 per equity share which is at a discount of 2.5% over the Wednesday closing price. ADVERTISEMENT SBI's board had on May 3, 2025 approved the resolution to raise the fund via the qualified institutional placement (QIP) mode. The board authorised the opening of the issue today. Shares of the bank ended 1.9% higher on the day, while the benchmark Nifty 50 index closed flat. Earlier, the board of India's largest public lender, State Bank of India (SBI), on Wednesday approved a plan to raise funds worth Rs 20,000 crore in INR through the issuance of Basel III-compliant Additional Tier 1 and Tier 2 lender will issue bonds to domestic investors during the current financial year, SBI said in its filing to the shares have been laggards, declining nearly 6% over 12 months, though they have managed to deliver positive returns of 5% in 2025 so far. ADVERTISEMENT The lender has lagged behind its peers in the PSU banking space. While the Nifty PSU Bank index declined by over 2% in the past 12 months, the broader Nifty gained 2.5% during the same shares have bounced back in the last six months, gaining 10% and outperforming the headline Nifty, whose returns stand at 8.6%. ADVERTISEMENT SBI shares are currently trading above their 50-day and 200-day simple moving averages (SMAs) of Rs 801 and Rs 789, respectively, according to stock has also exhibited volatility with a 1-year beta of 1.1. ADVERTISEMENT The public sector lender had reported a standalone net profit of Rs 17,035 crore for the quarter ended June 30, 2024, gaining 0.9% over Rs 16,884.29 crore reported in the year-ago period. The net interest income (NII) in Q1FY25 stood at Rs 41,125 crore, a jump of 5.71% over Rs 38,905 crore in Q1FY24. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
News18
26-06-2025
- Business
- News18
Union Bank of India To Raise Rs 6,000 Cr Via Equity And Debt, Shares In Focus
Last Updated: Union Bank of India plans to raise up to Rs 6,000 crore through equity and debt, with Rs 3,000 crore via equity and Rs 3,000 crore through debt, including AT1 and Tier 2 bonds. Union Bank of India to raise Rs 6000 via equity and debt. Union Bank of India Share Price: Shares of Union Bank of India are in the spotlight today, June 26, after the board approved a plan to raise up to Rs 6,000 crore through a mix of equity and debt instruments. The decision was made at the Board meeting on June 25, 2025. As per an exchange filing, the public sector lender will raise up to Rs 3,000 crore via equity capital in one or more tranches. This could be done through methods such as a Further Public Offer (FPO), Rights Issue, Qualified Institutions Placement (QIP), Preferential Allotment, or a combination of these. Shares of Union Bank of India settled 1.70 per cent lower on Wednesday to close at Rs 144.59 per share. The scrip opened at Rs 146.50 apiece. Additionally, the bank has received approval to raise up to Rs 3,000 crore through debt instruments. This includes Rs 2,000 crore via Basel III-compliant Additional Tier 1 (AT1) bonds and Rs 1,000 crore through Tier 2 bonds. The debt instruments may also be issued in foreign currency, according to the bank. Govt Cancels Bank's ED Appointment The Government has cancelled its order on the appointment of Pankaj Dwivedi as executive director (ED) of Union Bank of India and sent him back as General Manager (GM) of Punjab & Sind Bank. The government's decision came amid the pending case against Dwivedi in Delhi High Court. The court highlighted his appointment as ED of Union Bank of India, violating regulations due to the lack of vigilance clearance. Dwivedi had been ceased as ED of Union Bank of India with immediate effect. 'we wish to inform you that the Central Government vide notification no. 12/4/2024-BO.I dated June 24, 2025 has cancelled the appointment of Shri Pankaj Dwivedi as Executive Director of Union Bank of India and consequently he ceases to be the Executive Director of the Bank with immediate effect," Union Bank of India announced in the press release. First Published:
Time of India
06-06-2025
- Business
- Time of India
UBS faces tough new Swiss banking sector rules
Live Events POSSIBLE TARGET? (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Swiss government on Friday proposed stricter rules for UBS following its takeover of Credit Suisse, which could make it hold $26 billion more in core capital, confirming some of the bank's worst fears about incoming new key proposal, which the bank would have six to eight years to prepare for after it became law, is that UBS must fully capitalise its foreign units, confirming what many analysts, lawmakers and executives had been government said its capital requirement proposal would allow UBS to reduce its holding of Additional Tier 1 (AT1) bonds by $8 billion. Today, UBS must only 60% capitalise its foreign units and can cover some of the capital with AT1 executives say the additional capital burden will put the Zurich-based bank at a disadvantage to rivals and undermine the competitiveness of Switzerland as a financial in the bank rose after the government unveiled the proposals on Friday afternoon, climbing by more than 6%.Such was the shock in Switzerland over the 2023 collapse of Credit Suisse that top politicians led by Finance Minister Karin Keller-Sutter vowed to introduce more robust rules that would protect taxpayers and prevent another meltdown in now holds Switzerland's rotating one-year presidency and Friday's announcement will start a long period of political wrangling over the measures, which the governing federal council called "targeted and proportionate.""They strengthen trust in the financial centre, which, in the view of the federal council, is central to its stability and competitiveness," the council said in a statement.A parliamentary inquiry last year noted that since UBS bought Credit Suisse for 3 billion Swiss francs ($3.65 billion) in March 2023, it has had a balance sheet bigger than the Swiss economy, and urged the government to take the foreign units into federal council said it would present drafts on the proposals for consultations with stakeholders in the second half of 2025. Finance Ministry officials say laws requiring parliamentary approval will not enter force before measures known as ordinances that can be issued directly by the government could apply from the start of 2027.A six to eight-year transition period looked appropriate for UBS to meet new rules on capitalising foreign units from when they come into force, the government could give the bank until the mid-2030s to shares have lagged European peers in anticipation of the tougher rules and sources inside the bank have warned the new regulations could make it an appealing takeover the Swiss proposals, UBS's Common Equity Tier 1 (CET1) capital ratio could end up somewhat higher than those of global rivals, the government said. UBS's CET1 ratio of 14.3% could rise up to 17%, above rivals like JPMorgan at 15.8%, Morgan Stanley at 15.7%, and 15.3% at Goldman Sachs, it in UBS rose more than 60% in the 12 months following its acquisition of Credit Suisse. But the stock has since sharply underperformed; UBS shares have lost about 5% in the past year, while a top European banking index climbed 37%.Analysts say the new regulations could trigger a rejig of UBS's business model, which now focuses on growth in the United States and Asia. To take the edge off the rules, the bank may be tempted to sell some assets, banking experts Swiss government also set out piecemeal reforms to bolster the market regulator FINMA, which was heavily criticised for its response to the Credit Suisse include measures aimed at holding bankers to account, giving the regulator the power to impose fines and making it easier to restrain pay and claw back bonuses. Still, the proposals come years after the European Union introduced similar measures in the wake of the 2007-2009 financial government also proposed making it easier for banks to access liquidity from the Swiss National Bank. Barriers to transferring collateral to the SNB will also be removed.
Business Times
06-06-2025
- Business
- Business Times
UBS faces tough new Swiss banking sector rules
[BERN] The Swiss government on Friday (Jun 6) proposed stricter rules for UBS following its takeover of Credit Suisse, which could make it hold US$26 billion more in core capital, confirming some of the bank's worst fears about incoming new regulations. The key proposal, which the bank would have six to eight years to prepare for after it became law, is that UBS must fully capitalise its foreign units, confirming what many analysts, lawmakers and executives had been expecting. The government said its capital requirement proposal would allow UBS to reduce its holding of Additional Tier 1 (AT1) bonds by US$8 billion. Today, UBS must only 60 per cent capitalise its foreign units and can cover some of the capital with AT1 debt. UBS executives say the additional capital burden will put the Zurich-based bank at a disadvantage to rivals and undermine the competitiveness of Switzerland as a financial centre. Shares in the bank rose after the government unveiled the proposals on Friday afternoon, climbing by more than 6 per cent. Such was the shock in Switzerland over the 2023 collapse of Credit Suisse that top politicians led by Finance Minister Karin Keller-Sutter vowed to introduce more robust rules that would protect taxpayers and prevent another meltdown in future. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Keller-Sutter now holds Switzerland's rotating one-year presidency and Friday's announcement will start a long period of political wrangling over the measures, which the governing federal council called 'targeted and proportionate.' 'They strengthen trust in the financial centre, which, in the view of the federal council, is central to its stability and competitiveness,' the council said in a statement. A parliamentary inquiry last year noted that since UBS bought Credit Suisse for US$3.65 billion in March 2023, it has had a balance sheet bigger than the Swiss economy, and urged the government to take the foreign units into account. The federal council said it would present drafts on the proposals for consultations with stakeholders in the second half of 2025. Finance Ministry officials say laws requiring parliamentary approval will not enter force before 2028. Separate measures known as ordinances that can be issued directly by the government could apply from the start of 2027. A six to eight-year transition period looked appropriate for UBS to meet new rules on capitalising foreign units from when they come into force, the government said. That could give the bank until the mid-2030s to comply. UBS's shares have lagged European peers in anticipation of the tougher rules and sources inside the bank have warned the new regulations could make it an appealing takeover target. Under the Swiss proposals, UBS' Common Equity Tier 1 (CET1) capital ratio could end up somewhat higher than those of global rivals, the government said. UBS's CET1 ratio of 14.3 per cent could rise up to 17 per cent, above rivals like JPMorgan at 15.8 per cent, Morgan Stanley at 15.7 per cent, and 15.3 per cent at Goldman Sachs, it said. Shares in UBS rose more than 60 per cent in the 12 months following its acquisition of Credit Suisse. But the stock has since sharply underperformed; UBS shares have lost about 5 per cent in the past year, while a top European banking index climbed 37 per cent. Analysts say the new regulations could trigger a rejig of UBS's business model, which now focuses on growth in the United States and Asia. To take the edge off the rules, the bank may be tempted to sell some assets, banking experts say. The Swiss government also set out piecemeal reforms to bolster the market regulator FINMA, which was heavily criticised for its response to the Credit Suisse collapse. These include measures aimed at holding bankers to account, giving the regulator the power to impose fines and making it easier to restrain pay and claw back bonuses. Still, the proposals come years after the European Union introduced similar measures in the wake of the 2007-2009 financial crisis. The government also proposed making it easier for banks to access liquidity from the Swiss National Bank. Barriers to transferring collateral to the SNB will also be removed. REUTERS
Yahoo
06-06-2025
- Business
- Yahoo
Switzerland hits UBS with $26 billion added capital requirement; shares rise
By Ariane Luthi and Oliver Hirt BERN (Reuters) -The Swiss government on Friday proposed stricter rules for UBS following its takeover of Credit Suisse, which could make it hold $26 billion more in core capital, confirming some of the bank's worst fears about incoming new regulations. The key proposal, which the bank would have six to eight years to prepare for after it became law, is that UBS must fully capitalise its foreign units, confirming what many analysts, lawmakers and executives had been expecting. UBS shares, which have lagged European peers amid uncertainty about the new rules, jumped after the proposals were made public on Friday afternoon, rising by more than 6% and on track for their best day since May 2024. The government said its capital requirement proposal would allow UBS to reduce its holding of Additional Tier 1 (AT1) bonds by $8 billion. Today, UBS must only 60% capitalise its foreign units and can cover some of the capital with AT1 debt. UBS executives say the additional capital burden will put the Zurich-based bank at a disadvantage to rivals and undermine the competitiveness of Switzerland as a financial centre. Such was the shock in Switzerland over the 2023 collapse of Credit Suisse that top politicians led by Finance Minister Karin Keller-Sutter vowed to introduce more robust rules that would protect taxpayers and prevent another meltdown in future. Keller-Sutter now holds Switzerland's rotating one-year presidency and Friday's announcement will start a long period of political wrangling over the measures, which the governing federal council called "targeted and proportionate." "They strengthen trust in the financial centre, which, in the view of the federal council, is central to its stability and competitiveness," the council said in a statement. A parliamentary inquiry last year noted that since UBS bought Credit Suisse for 3 billion Swiss francs ($3.65 billion) in March 2023, it has had a balance sheet bigger than the Swiss economy, and urged the government to take the foreign units into account. The federal council said it would present drafts on the proposals for consultations with stakeholders in the second half of 2025. Finance Ministry officials say laws requiring parliamentary approval will not enter force before 2028. Separate measures known as ordinances that can be issued directly by the government could apply from the start of 2027. A six to eight-year transition period looked appropriate for UBS to meet new rules on capitalising foreign units from when they come into force, the government said. That could give the bank until the mid-2030s to comply. POSSIBLE TARGET? Sources inside the bank have warned the new regulations could make UBS an appealing takeover target. Under the Swiss proposals, UBS's Common Equity Tier 1 (CET1) capital ratio could end up somewhat higher than those of global rivals, the government said. UBS's CET1 ratio of 14.3% could rise up to 17%, above rivals like JPMorgan at 15.8%, Morgan Stanley at 15.7%, and 15.3% at Goldman Sachs, it said. Shares in UBS rose more than 60% in the 12 months following its acquisition of Credit Suisse. But the stock has since sharply underperformed; UBS shares have lost about 5% in the past year, while a top European banking index climbed 37%. Analysts say the new regulations could trigger a rejig of UBS's business model, which now focuses on growth in the United States and Asia. To take the edge off the rules, the bank may be tempted to sell some assets, banking experts say. The Swiss government also set out piecemeal reforms to bolster the market regulator FINMA, which was heavily criticised for its response to the Credit Suisse collapse. These include measures aimed at holding bankers to account, giving the regulator the power to impose fines and making it easier to restrain pay and claw back bonuses. Still, the proposals come years after the European Union introduced similar measures in the wake of the 2007-2009 financial crisis. The government also proposed making it easier for banks to access liquidity from the Swiss National Bank. Barriers to transferring collateral to the SNB will also be removed. ($1 = 0.8222 Swiss francs) Sign in to access your portfolio
