On Friday, state-owned public sector lender Union Bank of India said it raised Rs 663 crore through primary bonds to fund business growth.

Union Bank of India said: “The bank has issued unsecured, subordinated, non-convertible, perpetual, taxable, fully paid Basel III Additional Tier 1 bonds (AT-1), which are like Tier 1 capital-eligible bonds” in a regulatory filing. It said the bank had raised a total of Rs 663 crore from bonds.

AT-1 bonds are loss-absorbing under Basel III norms, meaning that banks can write off such investments or convert them into common shares if the RBI approves. AT-1 bonds qualify as core or capital equity.