RPT-Union Bank to raise 10 bln rupees via debt

(Repeats story issued on Monday)

(Adds details, quotes, closing share price)

MUMBAI, Sept 1 (Reuters) - State-run Union Bank of India (UNBK.BO) plans to raise 10 billion rupees via debt in a month's time, Chairman M.V. Nair said on Monday.

The bank has headroom to raise up to 35 billion rupees and it would try to raise the amount by the end of 2008, he added. "We will raise as and when we require".

It would be a mix of perpetual and Tier-II bonds, he added.

The bank would like to maintain its capital adequacy ratio at around 12 percent and the ratings of its loans above 100 million rupees would relax its CAR by 0.70 percent, he said.

It was looking at a credit growth of 22 percent for the current fiscal.

The state-owned lender also plans to start insurance operations in December and a mutual fund in six months, Nair told reporters.

The bank has got the preliminary approval from the Insurance Regulatory and Development Authority and the first product would be launched by December, he said.

In December, the bank formed a life insurance joint venture with Bank of India (BOI.BO) and Japan's Dai-Ichi Mutual Life Insurance Co.

The bank was in the process of developing the business plan for asset management foray and the process would take about six months, he said.

The Mumbai-based bank has formed a joint venture with Belgian asset manager KBC Asset Management NV.

He was speaking on the sidelines of an event to launch a new logo for the bank, joining its peers such as Bank of Baroda (BOB.BO) and Canara Bank (CNBK.BO), who have undergone re-branding exercises.

Union Bank would spend 750 million rupees on advertising and publicity of the new logo and another 100-120 million to replace the signages at all its branches with the new ones, Nair said.

Shares in the bank ended 1.22 percent higher at 145.10 rupees in the Mumbai market.

(Reporting by Kaustav Roy; Editing by Ramya Venugopal)