Union Bank of India capital raise plans
Union Bank of India’s Board of Directors met on April 26, 2023, and announced their approval of a capital plan that aims to raise up to ₹10,100 crores. The plan is subject to certain conditions, including obtaining approval from the government of India, other regulatory bodies, and the bank’s shareholders.
The bank intends to raise up to ₹8,000 crores in equity capital through various methods such as a public issue (further public offer), rights issue, private placements, qualified institutional placements, and preferential allotment. The bank may also use a combination of these methods to offer eligible institutions access to equity capital. However, the bank can only proceed with these actions after receiving regulatory approval.
Additionally, the bank plans to raise up to ₹2,100 crores in Basel III compliant Additional Tier 1 (AT1) Bonds and/or Tier 2 bonds, which may include foreign currency denominated AT1/Tier 2 Bonds.
Union Bank of India’s capital plan will help the bank to expand its operations and better serve its customers while meeting regulatory requirements. The bank’s management is optimistic that this move will lead to better performance and growth in the coming years.
About Union Bank of India:
Union Bank of India, also known as UBI, is a Mumbai-based public sector bank. With a total business of US$106 billion, the bank serves more than 120 million customers.
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