Union Bank in talks with govt on rights issue
The bank management has discussed plans for rights issue with the government. The proposal is in preliminary stage, senior bank official said.
The bank needs fresh capital to support business growth and to meet Basel-II norms. There is also going to be demand infusion from new activities like the life insurance joint venture with Dai-Ichi and Bank of India.
State Bank of India has already raised about Rs 17,000 crore through a rights issue in March 2008.