Union Bank of India gains on plan to raise Rs 6,800 cr

Union Bank of India rose 1.50% to Rs 27.10 after the bank announced plans to raise the equity capital upto Rs 6,800 crore during the FY 2020-21.

The public sector bank said it will raise funds through various modes such as public issue (i.e. follow-on public offer) and/or rights issue and/or private placements, including qualified institutions placement and/or preferential allotment to the Government of India and/or other institutions and/or through any other modes subject to approval of the Government of India and other regulatory authorities. The announcement was made after market hours yesterday.

The bank has convened an extraordinary general meeting of its shareholders on 30 December 2020 to seek their approval for the proposed fund raising.

Union Bank of India reported a standalone net profit of Rs 516.62 crore in Q2 FY21 as against a net loss of Rs 1193.61 crore in Q2 FY20. Total income during the quarter jumped 90.3% YoY to Rs 20084.10 crore.

The Government of India held 89.07% stake in Union Bank of India as on 30 September 2020. The bank has a network of 9590 branches and 13,287 ATMs across the country.

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