Union Bank of India Plans Major Capital Infusion
State-owned Union Bank of India aims to raise Rs 6,000 crore through equity and debt to drive business growth. The board has approved raising up to Rs 3,000 crore via equity and Rs 3,000 crore in bonds, subject to approvals from the government and shareholders.
- Country:
- India
Union Bank of India, a state-owned institution, announced on Wednesday its plans to boost business growth by raising a significant Rs 6,000 crore through a strategic combination of equity and debt. This decision was formalized during the bank's board meeting and was detailed in a regulatory filing.
The bank's board has given the green light to raise equity capital not exceeding Rs 3,000 crore through various channels, including a public issue, rights issue, private placements, or qualified institutions placements. This capital raise is contingent upon necessary approvals from the government, regulatory authorities, and bank shareholders.
Moreover, the board approved a proposal to issue Basel-III compliant bonds, including Additional Tier-1 bonds up to Rs 2,000 crore, and Tier-2 bonds up to Rs 1,000 crore, with the option for these to be denominated in foreign currency.
(With inputs from agencies.)
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