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Union Bank Eyes ₹8,000 Cr Capital Boost

26 May

Summary

Union Bank's board approved raising up to ₹8,000 crore.
The bank plans to issue equities worth ₹3,000 crore.
Debt capital will be raised via Basel III-compliant bonds.

Union Bank of India's board of directors has given the green light to a significant capital infusion plan, targeting up to ₹8,000 crore. This strategic move aims to bolster the bank's financial strength and operational capacity.

The approved plan encompasses raising ₹3,000 crore through equity capital. This will be achieved through various instruments including public offerings, rights issues, private placements, and preferential allotments, to be executed in tranches.

Furthermore, the bank intends to raise debt capital amounting to ₹5,000 crore. This debt will be structured as Basel III-compliant additional Tier 1 bonds and/or Tier 2 bonds, ensuring adherence to international banking standards.

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