State-owned Union Bank of India on Wednesday said its board has approved raising up to Rs 10,100 crore through a combination of equity and debt, as per an exchange filing.
The bank has proposed raising up to Rs 8,000 crore in tranches, through equity through follow-on public offer, rights issue or private placement, including qualified institutional placement.
Also Read: Tamilnad Mercantile Bank’s MD targets pan-India presence
Rupee 2,100 crore will be raised through issuance of additional tier-I (AT-1) bonds and tier-II bonds, as per the notice. As on December 31, the bank’s capital adequacy ratio stood at 14.45%, with common equity tier-I ratio at 10.71%.
Last week, the executive committee of State Bank of India’s (SBI) central board had approved raising $2 billion of long-term funds through a public offer or private placement of senior unsecured notes or bonds in US dollar or any other convertible currency during FY24, the bank informed exchanges.
Union Bank of India’s shares ended 1.6% higher at Rs 74.95 apiece on the Bombay Stock Exchange on Wednesday.