Union Bank of India spurts after board's nod for capital raising

Union Bank of India jumped 5.72% to Rs 169 at 14:15 IST on BSE after the bank said that the board of directors approved capital raising for FY 2018 in a meeting held today, 28 April 2017.

The announcement was made during market hours today, 28 April 2017.

Meanwhile, the S&P BSE Sensex was down 116.23 points or 0.39% at 29,913.51.

More than usual volumes were traded on the counter. On the BSE, 8.59 lakh shares were traded in the counter so far as against average daily volume of 6.1 lakh shares in the past one quarter. The stock had hit a high of Rs 169.75 and a low of Rs 160.90 so far during the day. The stock had hit a 52-week high of Rs 172.65 on 6 February 2017. The stock had hit a 52-week low of Rs 104.50 on 23 May 2016.

The large-cap bank has equity capital of Rs 687.44 crore. Face value per share is Rs 10.

Union Bank of India's board of directors approved capital plan for the year ending 31 March 2018 (FY 2018). The board approved to raise total capital funds up to Rs 6350 crore during FY 2018 in the form of core equity capital and/or additional tier 1 (AT1) bonds and/or tier 2 bonds, subject to maximum issue of Rs 4800 crore, within overall limit of Rs 6350 crore, of additional tier 1 (AT1) bonds and/or tier 2 bonds.

The board approved to raise equity capital not exceeding Rs 4950 crore, within overall limit of Rs 6350 crore, during FY 2018 through public issue (i.e. follow-on-public issue) and/or rights issue and/or private placement, including qualified institutional placements and/or preferential allotment to the Government of India or other institutions and/or any other mode(s) subject to necessary approvals.

Union Bank of India's net profit rose 32.4% to Rs 104 crore on 8.9% rise in total income to Rs 9589.45 crore in Q3 December 2016 over Q3 December 2015.

Union Bank of India is one of largest state-owned banks in India. The Government of India (GoI) held 63.44% in Union Bank of India (as per the shareholding pattern as on 31 March 2017).

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