Union Bank receives board's approval to raise Rs 74 bn in current fiscal

Public sector Union Bank of India on Friday said it has got approval from its board to raise up to Rs 74 billion in the current financial year by way of core equity capital or through bonds.

The bank has capped the money to be raised from additional tier I (ATI) bonds or tier 2 bonds to Rs 37 billion within the overall capital raising limit of Rs 74 billion.

For money that can be raised via equity capital, the bank said it has been permitted to mop up an amount not exceeding Rs 68.5 billion within the overall limit of Rs 74 billion during 2018-19 through follow on public issue or rights issue or private placement including qualified institutional placement or by preferential allotment to the government.

"Raising of equity capital is subject to shareholders' approval which would be sought at the annual general meeting to be held on June 27, 2018," it said in a regulatory filing.

Stock of Union Bank closed 2.12 per cent down at Rs 83.30 on BSE.