City Union Bank to raise Rs 500 cr from QIP

Private sector City Union Bank today said it proposes to raise Rs 500 crore through Qualified Institutions Placement (QIP) to fund its business growth.
It is also resolved to seek shareholders approval for an enabling resolution to raise equity capital including premium up to Rs 500 crore through QIP, City Union Bank said in a filing to the BSE.
The fund would be raised as and when required, it said.
Shares of the bank closed at Rs 101.35 per unit, down 0.20 per cent on the BSE.
The bank reported a 18.8 per cent increase in net profits to Rs 99.07 crore as compared to Rs 83.34 crore for the quarter ending March 31, 2015.

Total income of the bank for the March quarter was Rs 793.64 crore, up from Rs 720.64 crore during same period of previous year.
For the full financial year ending March 31, net profit of the bank grew by 13.8 per cent to Rs 395.02 crore from Rs 347.07 crore during the corresponding period last year.