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

Union Bank of India rose 2.75% to 31.8 after the PSU bank said it will hold an extraordinary general meeting (EGM) later this month to seek shareholders' approval for raising upto Rs 6,800 crore equity capital.

The EGM will be held on 30 December 2020 to obtain shareholders' approval for raising of equity capital up to Rs 6,800 crore during the FY2020-21 by way of various modes such as public issue, rights issue, or private placement including qualified institutions placement or preferential allotment to the government, the public sector bank said in a filing.

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.

Union Bank of India reported a standalone net profit of Rs 516.62 crore in Q2 FY21 as against a net loss of Rs 1,193.61 crore in Q2 FY20. Total income during the quarter jumped 90.3% YoY to Rs 20,084.10 crore.

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